Implementation support materials for ASA 315 Identifying and Assessing the Risks of Material Misstatement

Thursday, December 9, 2021

ASA 315 is effective for financial reporting periods commencing on or after 15 December 2021 (which means it is effective for December 2022 year ends). Refer to our dedicated page on the AUASB website relating to ASA 315 which includes guidance issued to date, with more to come. In particular, AUASB has issued a staff paper on Scalability Considerations for Audits of Less Complex Entities and some Frequently Asked Questions (FAQs).

The series of FAQs provides answers to potential implementation areas that our stakeholders are seeking clarification on. They include questions related to areas such as:

• key changes
• risk of material misstatement assessment
• inherent risk factors
• stand back requirement
• documentation

The AUASB will update the standards impacted by ASA 315 on the digital portal and AUASB website. In particular, note that there are more substantial changes in ASA 330 and ASA 540. Watch this space for more information.