Explanatory Statement

ASA 2015‑1 Amendments to Australian Auditing Standards

Issued by the Auditing and Assurance Standards Board

Obtaining a Copy of this Explanatory Statement

This Explanatory Statement is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au

Contact Details

Reasons for Issuing Auditing Standard ASA 2015‑1

The AUASB issues Auditing Standard ASA 2015‑1 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 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.

Purpose of Auditing Standard ASA 2015‑1 Amendments to Australian Auditing Standards

The purpose of the Auditing Standard is to make amendments to the following Auditing Standards:

Main Features

This Auditing Standard makes amendments to the following Auditing Standards:

ASA 200         Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (27 October 2009)

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

ASA 220         Quality Control for an Audit of a Financial Report and Other Historical Financial Information (27 October 2009)

ASA 230         Audit Documentation (27 October 2009)

ASA 240         The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (27 October 2009)

ASA 300         Planning an Audit of a Financial Report (27 October 2009)

ASA 315         Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (27 October 2009)

ASA 320         Materiality in Planning and Performing an Audit (27 October 2009)

ASA 330         The Auditor's Responses to Assessed Risks (27 October 2009)

ASA 450         Evaluation of Misstatements Identified during the Audit (27 October 2009)

ASA 500         Audit Evidence (27 October 2009)

ASA 510         Initial Audit Engagements‑Opening Balances (27 October 2009)

ASA 540         Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures (27 October 2009)

ASA 560         Subsequent Events (27 October 2009)

ASA 580         Written Representations (27 October 2009)

ASA 600         Special Considerations‑Audits of a Group Financial Report (27 October 2009)

ASA 710         Comparative Information‑Corresponding Figures and Comparative Financial Reports (27 October 2009)

ASA 800         Special Considerations‑Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks (27 October 2009)

Operative Date

ASA 2015‑1 Amendments to Australian Auditing Standards is operative for financial reporting periods ending on or after 15 December 2016.

Process of making Australian Auditing Standards

The AUASB’s Strategic Direction, inter alia, provides that the AUASB develop Australian Auditing Standards that:

·                    have a clear public interest focus and are of the highest quality;

·                    use the International Standards on Auditing (ISAs) of the International Auditing and Assurance Standards Board (IAASB) as the underlying standards;

·                    conform with the Australian regulatory environment; and

·                    are capable of enforcement.

Consultation Process prior to issuing the Auditing Standard

The AUASB has consulted publicly as part of its due process in developing the Auditing Standard. 

Exposure Draft ED 2015‑1 Amendments to Australian Auditing Standards was issued on 30 April 2015 with a 60 day comment period.

Exposure Draft ED 2015‑2 Amendments to Australian Auditing Standards was issued on 12 June 2015 with a 60 day comment period.

Exposure Draft ED 2015‑3 Amendments to Australian Auditing Standards was issued on 23 October 2015 with a 30 day comment period.

Submissions were received by the AUASB and these were considered as part of the development and finalisation of the Auditing Standard.

Regulatory Impact Statement

A Regulatory Impact Statement (RIA) has been prepared in connection with the preparation of ASA 2015‑1 Amendments to Australian Auditing Standards.  The RIA has been cleared by the Office of Best Practice Regulation (OBPR).