Document ID: chunk:federal_register_of_legislation:F2021C01242:reg:5:p11
Version: federal_register_of_legislation:F2021C01242
Segment Type: reg
Provision Reference: reg 5 (pt 11/12)
Character Range: 34902–37860

except as to Note Y, which is as of (date of completion of audit procedures restricted to amendment described in Note Y)."

No Amendment of the Financial Report by Management (Ref: Para. 13)

A14.         In some jurisdictions, management may not be required by law, regulation or the financial reporting framework to issue an amended financial report.  This is often the case when issuance of the financial report for the following period is imminent, provided appropriate disclosures are made in such a report.

Considerations Specific to Public Sector Entities

A15.         In the public sector, the actions taken in accordance with paragraph 13 when management does not amend the financial report may also include reporting separately to the legislature, or other relevant body in the reporting hierarchy, on the implications of the subsequent event for the financial report and the auditor's report.

Auditor Action to Seek to Prevent Reliance on Auditor's Report (Ref: Para. 13(b))

A16.         The auditor may need to fulfil additional legal obligations even when the auditor has notified management not to issue the financial report and management has agreed to this request.

A17.         Where management has issued the financial report despite the auditor's notification not to issue the financial report to third parties, the auditor's course of action to prevent reliance on the auditor's report on the financial report depends upon the auditor's legal rights and obligations.  Consequently, the auditor may consider it appropriate to seek legal advice.

Implications of Other Information Received after the Financial Report Has Been Issued (Ref: Para. 14))

A18.         The auditor's obligations regarding other information received after the date of the auditor's report are addressed in ASA 720.  While the auditor has no obligation to perform any audit procedures regarding the financial report after the financial report has been issued, ASA 720 contains requirements and guidance with respect to other information obtained after the date of the auditor's report.

Facts Which Become Known to the Auditor after the Financial Report Has Been Issued

No Amendment of the Financial Report by Management (Ref: Para. 15)

Considerations Specific to Public Sector Entities

A19.         In some jurisdictions, entities in the public sector may be prohibited from issuing an amended financial report by law or regulation.  In such circumstances, the appropriate course of action for the auditor may be to report to the appropriate statutory body.

Auditor Action to Seek to Prevent Reliance on Auditor's Report (Ref: Para. 17)

A20.         Where the auditor believes that management, or those charged with governance, have failed to take the necessary steps to prevent reliance on the auditor's report on the financial report previously issued by the entity despite the auditor's prior notification that the auditor will take action to seek to