ASA 2013-3 - Amendments to Australian Auditing Standards - July 2013

Link to law: https://www.comlaw.gov.au/Details/F2013L01326

 
 
ASA 2013‑3
(July 2013)
Auditing Standard ASA 2013‑3
Amendments to Australian Auditing Standards
Issued by the Auditing and Assurance Standards Board
Obtaining a Copy of this Auditing Standard
This Auditing Standard is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au
Contact Details
Auditing and Assurance Standards Board
Level 7, 600 Bourke Street
Melbourne   Victoria   3000
AUSTRALIA
Phone:  (03) 8080 7400
Fax:      (03) 8080 7450
E‑mail: enquiries@auasb.gov.au
Postal Address:
PO Box 204
Collins Street West
Melbourne   Victoria   8007
AUSTRALIA
COPYRIGHT
© 2013 Commonwealth of Australia.  The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries.  Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source.  Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Executive Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne Victoria 8007.  Otherwise, no part of the Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
ISSN 1833‑4393
CONTENTS
PREFACE
AUTHORITY STATEMENT
Paragraphs
Application.............................................................................................................................. 1‑2
Operative Date........................................................................................................................... 3
Introduction
Scope of this Auditing Standard............................................................................................... 4‑5
Objective..................................................................................................................................... 6
Definition.................................................................................................................................... 7
Amendments to Auditing Standard
Amendments to ASA 102............................................................................................................ 8
Amendments to ASA 502............................................................................................................ 9
Amendments to ASA 570..................................................................................................... 10‑13
Amendments to ASA 580.......................................................................................................... 14
Amendments to ASA 700.......................................................................................................... 15
Amendments to ASA 800.......................................................................................................... 16
Amendments to ASRE 2410................................................................................................. 17‑18
Amendments to ASRE 2415...................................................................................................... 19
Conformity with International Standards on Auditing
 
preface
Reasons for Issuing ASA 2013‑3
The Auditing and Assurance Standards Board (AUASB) issues Auditing Standard ASA 2013‑3 Amendments to Australian Auditing Standards, pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.
The AUASB is an independent statutory committee of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act).  Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation.  These Auditing Standards are legislative instruments under the Legislative Instruments Act 2003.  Under section 227B of the ASIC Act, the AUASB may formulate Assurance Standards for other purposes.
Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality as well as continuing to develop auditing and assurance standards other than for historical financial information. 
Auditing Standards Amended by ASA 2013‑3
This Auditing Standard makes amendments to the following Auditing Standards:
ASA 102         Compliance with Ethical Requirements when Performing Audits, Reviews and Other                      Assurance Engagements
ASA 502         Audit Evidence - Specific Considerations for Litigation and Claims
ASA 570         Going Concern
ASA 580         Written Representations
ASA 700         Forming an Opinion and Reporting on a Financial Report
ASA 800         Special Considerations - Audits of Financial Reports Prepared in Accordance with                        Special Purpose Frameworks
ASRE 2410     Review of a Financial Report Performed by the Independent Auditor of the Entity
ASRE 2415     Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting                   under the ACNC Act or Other Applicable Legislation or Regulation
Main Features
This Auditing Standard makes amendments to the Auditing Standards listed above.  The amendments comprise editorial changes made by the AUASB in order to maintain the quality of the presentation of the Australian Auditing Standards.  The amendments do not have an impact on the requirements of the Auditing Standards.
Operative Date
This Auditing Standard is operative for financial reporting periods commencing on or after 1 July 2013.
 
AUTHORITY STATEMENTS
The Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2013‑3 Amendments to Australian Auditing Standards, pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.
Dated: 1 July 2013                                                                                                       M H Kelsall
                                                                                                                        Chairman - AUASB
Auditing Standard ASA 2013‑3
Amendments to Australian Auditing Standards
Application
1.                  This Auditing Standard applies to:
(a)                an audit of a financial report for a financial year, or an audit, or review, of a financial report for a half‑year, in accordance with the Corporations Act 2001; and
(b)               an audit, or review, of a financial report, or a complete set of financial statements, for any other purpose.
2.                  This Auditing Standard also applies, as appropriate, to an audit, or review, of other historical financial information.
Operative Date
3.                  This Auditing Standard is operative for financial reporting periods commencing on or after 1 July 2013.
Introduction
Scope of this Auditing Standard
4.                  This Auditing Standard makes amendments to the Australian Auditing Standards.  The amendments arise principally from editorial corrections and have no impact on the requirements of the amended Auditing Standards. 
5.                  This Auditing Standard uses underlining, striking out and other typographical material to identify the amendments to Auditing Standards, in order to make the amendments more understandable.  However, the amendments made by this Auditing Standard do not include that underlining, striking out or other typographical material.
Objective
6.                  The objective of this Auditing Standard is to make amendments to the following Auditing Standards:
(a)                ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements
(b)               ASA 502 Audit Evidence - Specific Considerations for Litigation and Claims
(c)                ASA 570 Going Concern
(d)               ASA 580 Written Representations
(e)                ASA 700 Forming an Opinion and Reporting on a Financial Report
(f)                ASA 800 Special Considerations - Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks
(g)                ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity
(h)               ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation
Definition
7.                  For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary.  This Auditing Standard does not introduce new definitions.
Amendments to Auditing Standard
Amendments to ASA 102
8.                  The first sentence of paragraph A1 is amended to read as follows:
            The auditor, assurance practitioner, engagement quality control reviewer, and firm are to have regard to the applicable requirements of APES 110 Code of Ethics for Professional Accountants, issued by the Accounting Professional and Ethical Standards Board (February 2008 and December 2010 as amended December 2011 applicable), which are to be taken into account in determining whether relevant ethical requirements referred to in paragraph 5 of this Auditing Standard have been met.
Amendments to ASA 502
9.                  Paragraph number 1, assigned to the text appearing directly under the sub‑heading: “Effective Date”, is deleted.
Amendments to ASA 570
10.              The 14th bullet point in paragraph A2 is amended to read as follows:
·                     Loss of a major market, key customer(s), franchise, license licence, or principal supplier(s).
11.              The first line of the emphasis of matter under paragraph A21 is amended to read as follows:
            Without qualifying modifying our opinion, we draw attention to Note X in the financial report which indicates that the entity incurred a net loss of…
12.              Paragraph Aus A21.1 is amended to read as follows:
            Refer to [Aus] Appendix 3 for an Illustrative Auditor’s Report that contains an unqualified unmodified opinion with an Emphasis of Matter paragraph.
13.              The last paragraph of the Auditor’s Responsibility section of [Aus] Illustration 1 in [Aus] Appendix 3 is amended to read as follows:
            We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.
Amendments to ASA 580
14.              Appendix 1 is amended to read as follows:
            …
            ASA 502 Audit Evidence—Specific Considerations for Litigation and Claims – paragraph 76
Amendments to ASA 700
15.              The introductory information to [Aus] Illustration 3A in Appendix 1 is amended to read as follows:
            …
·                     The financial report is prepared for a general purpose under the Corporations Act 2001.
                        Note: This illustrative auditor’s report refers to both the company AND the consolidated entity, however, where applicable under the Act, the financial report may comprise only consolidated information.  Where this option is adopted, this illustrative auditor’s report will need to be amended accordingly.
Amendments to ASA 800
16.              The illustrative auditor’s report, [Aus] Illustration 4, in Appendix 1 is amended to read as follows:
            Report on Other Legal and Regulatory Standards
            [Form and content of this section of the auditor’s report will vary depending on the nature of the auditor’s other reporting responsibilities.]
Amendments to ASRE 2410
17.              Paragraph (i) in the example of an Engagement Letter contained in Appendix 1 is amended to read as follows:
            …
            access to information relevant to the preparation of the half‑year financial report;
18.              The paragraph on directors’ responsibility in the example auditor’s review report contained in Appendix 3 is amended to read as follows:
The directors of the [company/registered scheme/disclosing entity] are responsible for the preparation of the half‑year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors [those charged with governance] determine is necessary to enable the preparation of the half‑year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
Amendments to ASRE 2415
19.              The paragraph on directors’ responsibility in the example auditor’s review report contained in Appendix 1 is amended to read as follows:
            The directors/board of management of the company/entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001/ACNC Act and for such internal control as the directors/board of management determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
* * *
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC)
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