Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards

Administered by Department of the Treasury

Legislation au F2021L01525 In force Legislative Instrument

Legislation content

 

 

ASA 2021-5

(November 2021)

Explanatory Statement

ASA 2021-5 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

Auditing and Assurance Standards Board

Podium Level 14, 530 Collins Street

Melbourne   Victoria   3000

AUSTRALIA

Phone: (03) 8080 7400

E-mail: enquiries@auasb.gov.au

Postal Address:

PO Box 204, Collins Street West

Melbourne   Victoria   8007

AUSTRALIA


Reasons for Issuing Auditing Standard ASA 2021-5

The AUASB issues Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.

The AUASB is a 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 Legislation 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 2021-5 Amendments to Australian Auditing Standards

The purpose of the Auditing Standard is to make amendments to the requirements and application & other explanatory material of the following Auditing Standards:

ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)

ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)

ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)

ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)

ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)

ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)

ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)

ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)

ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)

ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)

ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)

ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)

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 (Issued 30 June 2010 and amended to 1 July 2013)

Main Features

This Auditing Standard makes amendments to Australian Auditing Standards. The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.

Operative Date

ASA 2021-5 Amendments to Australian Auditing Standards is operative for financial reporting periods commencing on or after 15 December 2021.

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

It is the view of the AUASB that ASA 2021-5 do not require public exposure as the amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.

Regulatory Impact Statement

Office of Best Practice Regulation (OBPR) considers that ASA 2021-5 Amendments to Australian Auditing Standards is unlikely to have a more than minor regulatory impact. Therefore, the preparation of a Regulatory Impact Statement (RIA) is not required.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Legislative Instrument: Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

Background

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.

Purpose of Auditing Standard ASA 2021-5

The purpose of ASA 2021-5 is to make amendments to the requirements and application & other explanatory material of the following Auditing Standards:

ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)

ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)

ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)

ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)

ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)

ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)

ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)

ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)

ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)

ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)

ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)

ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)

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 (Issued 30 June 2010 and amended to 1 July 2013)

 

Main Features

ASA 2021-5 makes amendments to Australian Auditing Standards. The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.

Human Rights Implications

Australian Auditing Standards are issued by the AUASB in furtherance of the objective of facilitating the Australian economy. The standards do not diminish or limit any of the applicable human rights or freedoms, and thus do not raise any human rights issues.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Auditing and Assurance Standards Board (AUASB) has issued the Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards to address minor inaccuracies in existing auditing standards. This legislative instrument was enacted in 2021 by the AUASB, an independent statutory committee established under section 227A of the Australian Securities and Investments Commission Act 2001, with the purpose of ensuring high-quality auditing standards that align with the public interest. The amendments represent editorial corrections to rectify minor inaccuracies such as misspellings and numbering or grammatical mistakes in the relevant auditing standards. The legislative instrument is considered to have a minor regulatory impact and is compatible with human rights as it does not diminish or limit any applicable rights or freedoms.

Scope and Application

Auditing Standard ASA 2021-5, issued by the Auditing and Assurance Standards Board (AUASB), amends various Australian Auditing Standards to rectify minor inaccuracies, including misspellings, numbering, and grammatical errors. The AUASB, a non-corporate Commonwealth entity established under the Australian Securities and Investments Commission Act 2001, has the authority to create Auditing Standards under the Corporations Act 2001. These standards apply to auditors and auditees involved in the audit of financial reports across various industries within Australia. The amendments do not introduce new requirements or affect the scope of existing standards but aim to improve clarity and accuracy in the standards' text. ASA 2021-5 applies nationally and is effective for financial reporting periods commencing on or after 15 December 2021. The amendments are considered to have a minor regulatory impact and do not require a Regulatory Impact Statement. Importantly, the AUASB has assessed that these amendments are compatible with human rights, as they do not diminish or limit any applicable human rights or freedoms.

Key Provisions

The Auditing Standard ASA 2021-5, titled "Amendments to Australian Auditing Standards," introduces a series of amendments aimed at correcting minor inaccuracies within various Australian Auditing Standards. These corrections include addressing misspellings, numbering errors, and grammatical mistakes to ensure the accuracy and clarity of the auditing standards (Section 1). The operative sections of the legislation pertain to specific amendments made to the listed standards, which include the Preamble to AUASB Standards, Overall Objectives of the Independent Auditor, The Auditor's Responsibilities Relating to Fraud, The Auditor's Responses to Assessed Risks, Audit Evidence, Auditing Accounting Estimates, Related Parties, Subsequent Events, Going Concern, Using the Work of Internal Auditors, Using the Work of an Auditor's Expert, Comparative Information, and Review of a Financial Report for specific entities. The Auditing and Assurance Standards Board (AUASB) is obligated to ensure that these amendments are implemented correctly within the auditing standards, reflecting the intent of maintaining the highest quality and clarity in auditing practices. The AUASB must adhere to its strategic direction, which mandates that the auditing standards should focus on public interest, use International Standards on Auditing as underlying standards, conform with the Australian regulatory environment, and be capable of enforcement (Section 3). Additionally, the AUASB is tasked with ensuring that the amendments do not negatively impact the human rights of individuals, maintaining compatibility with international human rights instruments. Failure to comply with the amended auditing standards could result in non-conformance with the legislative requirements and potentially lead to regulatory scrutiny or enforcement actions. However, the legislative instrument itself does not specify explicit offences, penalties, or civil/criminal consequences for breach of the amendments. Instead, the focus is on ensuring that the auditing standards remain precise and effective in guiding auditors in their practice, thereby maintaining the integrity of financial reporting and audits within Australia (Section 4).

Legal classification tags

Area of Law
Corporate Law & Governance
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Regulatory Standards
Enforcement Powers

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.