Are you ready for ASA 315?

Friday, November 4, 2022

ASA 315 Identifying and Assessing the Risks of Material Misstatement is effective for financial reporting periods commencing on or after 15 December 2021 (i.e., December 2022 year ends).

The AUASB has a web page containing FAQs and Publications to support the implementation of ASA 315, such as guidance on how ASA 315 is scalable, and how it introduces new requirements related to understanding IT and general IT controls.

Now the IAASB has issued a ‘First-Time Implementation Guide’ for this new standard which helps auditors understand and apply the revised standard. The First-Time Implementation Guide includes an explanation of the substantial changes from the previous version of ASA/ISA 315, but importantly also what concepts have not changed.

Auditors should also note that as a consequence of the update of ASA 315 there are also consequential changes to other standards - in particular ASA 330 and ASA 540.