Auditing Standard ASA 2017-1
Amendments to Australian Auditing Standards

Issued by the Auditing and Assurance Standards Board

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ISSN 1833-4393

CONTENTS

PREFACE

AUTHORITY STATEMENT

CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING

Paragraphs

Application...............................................................1-3

Operative Date..............................................................4

Introduction

Scope of this Auditing Standard..................................................5

Objective..................................................................6

Definitions.................................................................7

Amendments to Auditing Standards

Amendments to ASA 210.......................................................8

Amendments to ASA 700.....................................................9-10

Amendments to ASA 701......................................................11

Amendments to ASA 800....................................................12-16

Amendments to ASA 805....................................................17-21

preface

Reasons for Issuing ASA 2017-1

The AUASB issues Auditing Standard ASA 2017-1 Amendments to Australian Auditing Standards pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.

The AUASB is an Non Corporate Commonwealth Entity 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 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.

Main Features

This Auditing Standard makes amendments to the following Auditing Standards:

ASA 210 Agreeing the Terms of Audit Engagements (27 October 2009)

ASA 700 Forming an Opinion and Reporting on a Financial Report (1 December 2015)

ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report (1 December 2015)

ASA 800 Special Considerations – Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks (26 July 2016)

ASA 805 Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement (26 July 2016)

Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required to have regard to any programme initiated by the IAASB for the revision and enhancement of the International Standards on Auditing (ISAs) and to make appropriate consequential amendments to the Australian Auditing Standards.

Dated: 30 May 2017 Roger Simnett
 Chairman - AUASB

Conformity with International Standards on Auditing

This Auditing Standard has been made for Australian legislative purposes and accordingly 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).  It contains miscellaneous amendments to various Australian Auditing Standards.

Auditing Standard ASA 2017-1

Amendments to Australian Auditing Standards

Application

1.                    In relation to the amendments to ASAs 210, 700 and 701 this Auditing Standard applies to:

• an audit of a financial report for a financial year, or an audit of a financial report for a half-year, in accordance with the Corporations Act 2001;
• an audit of a financial report, or a complete set of financial statements, for any other purpose; and
• an audit of other historical financial information as appropriate.

1.                    In relation to the amendments to ASA 800 this Auditing Standard applies to:

• an audit of a special purpose financial report for a financial year, or an audit of a special purpose financial report for a half-year, in accordance with the Corporations Act 2001;
• an audit of a special purpose financial report, or a complete set of financial statements, for any other purpose; and
• an audit of other historical financial information as appropriate.

1.                    In relation to the amendments to ASA 805 this Auditing Standard applies to:

• an audit of a single financial statement, or a specific element, account, or item of a financial statement; and
• an audit of other historical financial information as appropriate.

Operative Date

1.                    This Auditing Standard is operative for financial reporting periods ending on or after 15 December 2016.

Introduction

Scope of this Auditing Standard

1.                    This Auditing Standard makes amendments to the following Auditing Standards:
   1.                 ASA 210 Agreeing the Terms of Audit Engagements (27 October 2009)
   2.                 ASA 700 Forming an Opinion and Reporting on a Financial (1 December 2015)
   3.                 ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report (1 December 2015)
   4.                 ASA 800 Special Considerations – Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks (26 July 2016)
   5.                 ASA 805 Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement (26 July 2016)

Objective

1.                    The objective of this Auditing Standard is to:
   1.                 Make editorial amendments to the Auditing Standards and have no impact on the requirements of the amended Auditing Standards.
   2.                 Clarify the scope of ASA 701 in relation to condensed interim financial reports.

Definitions

1.                    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 Standards

Amendments to ASA 210

1.                    Bullet point Aus (iv) is changed to Aus (d) in Appendix 1, and is amended to read as follows:

Aus  (iv)(d) [Where applicable, in respect of other information:

1.                  WeYou will inform youus of all the documents that weyou expect to issue that may comprise other information;

If the other information has been is to be  provided prior to the auditor’s report date:

[The financial report and any other information you may obtain prior to the date of your auditor’s report will be consistent with one another, and the other information will not contain any material misstatements;] or

If the other information will not be provided prior to the auditor’s report date:

[With regard to any other information that you may not obtain prior to the date of the auditor’s report, that we intend to prepare and issue such other information and that weyou expect to issue it by [insert date.] and we will be provided it to you by [insert date.] to enable you to complete your required procedures.]]

Amendments to ASA 700

1.                    New paragraph Aus 49.1 inserted after paragraph 49 as follows:

The auditor’s report shall be dated as of the date the auditor signs that report.

1.                A footnote is added to the “Date of the auditor’s report” line in illustrations 1A, 2A, 3 and 4 as follows:

The date of the auditor’s report is the date the auditor signs the report.

Amendments to ASA 701

1.                New paragraph Aus 5.1 inserted after paragraph 5 as follows:

Key audit matters are not required to be communicated in auditor’s reports on condensed financial reports prepared in accordance with AASB 134 Interim Financial Reporting.

Amendments to ASA 800

1.                Amend numbering of current paragraph Aus 1.1 to Aus 0.1.
2.                Amend numbering of current paragraph Aus 1.2 to Aus 0.2.
3.                Amend numbering of current paragraph Aus 1.3 to Aus 0.3.
4.                Paragraph A18 and associated footnote is deleted.  The following wording is inserted:

[Deleted by the AUASB.  Refer to Aus A18.1].

1.                A new paragraph Aus A18.1 and footnote is inserted as follows:

The requirement in ASA 700 for the name of the engagement partner to be included in the auditor’s report where required by law or regulation also applies to audits of special purpose financial reports. (footnote See ASA 700 paragraph Aus 46.1, A61-A63)

Amendments to ASA 805

1.                Amend numbering of current paragraph Aus 1.1 to Aus 0.1.
2.                Amend numbering of current paragraph Aus 1.2 to Aus 0.2.
3.                Amend numbering of current paragraph Aus 1.3 to Aus 0.3.
4.                Paragraph A22 and associated footnote is deleted.  The following wording is inserted:

[Deleted by the AUASB.  Refer to Aus A22.1].

1.                A new paragraph Aus A22.1 and footnote is inserted as follows:

The requirement in ASA 700 for the name of the engagement partner to be included in the auditor’s report where required by law or regulation also applies to audits of single financial statements and specific elements, accounts or items of a financial statement. (footnote See ASA 700 paragraph Aus 46.1, A61-A63).