Skip to Content | Contact Us | About AUASB | Links

ASA 315 and ASA 540

Invitation to comment: Exposure Drafts of revisions to ASA 315 and ASA 540

The AUASB invites comments on the following Exposure Drafts, approved for issuance by the AUASB on 31 July 2018:

Exposure Draft Other material
ED 01/18 Proposed Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement (ED 01/18)

Explanatory Guide

Explanatory Memorandum

ED 02/18 Proposed Auditing Standard ASA 2018-1 Amendments to Australian Auditing Standards (Conforming and consequential amendments arising from the proposed revisions to ASA 315) (ED 02/18)

Explanatory Guide

Explanatory Memorandum

ED 03/18 Proposed Auditing Standard ASA 540 Auditing Accounting Estimates and Related Disclosures (ED 03/18)

Explanatory Guide

Explanatory Memorandum

ED 04/18 Proposed Auditing Standard ASA 2018-2 Amendments to Australian Auditing Standards (Conforming and consequential amendments arising from the proposed revisions to ASA 540) (ED 04/18)

Explanatory Guide

Explanatory Memorandum

Stakeholders are requested to provide their written feedback on the Exposure Drafts via the AUASB website by 15 October 2018.

Please direct any queries relating to these exposure drafts to the AUASB via enquiries@auasb.gov.au.

Have your say: Roundtables and webinars

The AUASB is planning a series of public roundtable forums across Australia as well as webinars to inform stakeholders and to obtain feedback on the Exposure Drafts. The first webinar is co-hosted with the NZAuASB:

When 10.30 am – 12.00 pm AEST, Thursday 16 August
Host NZAuASB
Presenter Fiona Campbell, IAASB Member and Chair of the ISA 315 Task Force
Summary Fiona will explore the key revisions to the auditor’s risk assessment procedures, as introduced through the recently published ISA 315 Exposure Draft
Further information and registration

The dates, registration details and venues for other roundtables and webinars will be announced shortly.

Proposed Auditing Standard ASA 315

Exposure Drafts 01/18 and 02/18 include proposed revisions to ASA 315 Identifying and Assessing the Risks of Material Misstatement and conforming and consequential amendments to other related standards as a result of the proposed changes to ASA 315.

For further information, view the AUASB Explanatory Memorandum.

New approach: AUASB issues exposure drafts concurrently with IAASB

Importantly, ED 01/18 and ED 02/18 are the Australian equivalents of international exposure drafts issued by the IAASB in relation to ISA 315. To obtain local feedback on the international standard as soon as possible – and to reduce the time required to finalise the Australian version of ISA 315 after it has been approved – at its meeting in April 2018, the AUASB agreed to trial issuing its exposure drafts for ASA 315 concurrently with the IAASB.

This differs from the AUASB’s typical approach, which has been to issue exposure drafts of the Australian Auditing Standards (ASAs), developed and released after global approval. The AUASB has released an Explanatory Guide which provides more information about this revised process.

This approach gives stakeholders a timely opportunity to influence the direction of the standard at an international level as their feedback will inform the Australian submission to the IAASB on the proposed revised standard and conforming and consequential amendments. 

Proposed Auditing Standard ASA 540

Exposure Drafts 03/18 and 04/18 include proposed revisions to ASA 540 Auditing Accounting Estimates and Related Disclosures and conforming and consequential amendments to other related standards as the result of changes approved by the IAASB to the equivalent international standard ISA 540 (revised).

ED 03/18 and 04/18 have been released under the AUASB’s existing exposure process, where the Australian exposure drafts are based on the final ISA standard approved by the IAASB. Stakeholder feedback will inform the AUASB when considering if any compelling reasons exist to amend the international standard for issue in Australia.

For further information, view the AUASB Explanatory Memorandum.