Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p25
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 25/53)
Character Range: 79855–82949

financial reporting process (Ref: Para. 35)

A49.         When some, but not all, of the individuals involved in the oversight of the financial reporting process are also involved in preparing the financial report, the description as required by paragraph 35 may need to be modified to appropriately reflect the particular circumstances of the entity.  When individuals responsible for the oversight of the financial reporting process are the same as those responsible for the preparation of the financial report, no reference to oversight responsibilities is required.

Auditor's Responsibilities for the Audit of the Financial Report (Ref: Para. 37–40)

A50.         The description of the auditor's responsibilities as required by paragraphs 37–40 may be tailored to reflect the specific nature of the entity, for example, when the auditor's report addresses a group's financial report.  [Aus] Illustration 2A in the Appendix to this Auditing Standard includes an example of how this may be done.

Objectives of the auditor (Ref: Para. 38(a))

A51.         The auditor's report explains that the objectives of the auditor are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes the auditor's opinion.  These are in contrast to management's responsibilities for the preparation for the financial report.

Description of materiality (Ref: Para. 38(c))

A52.         The Appendix to this Auditing Standard provides illustrations of how the requirement in paragraph 38(c), to provide a description of materiality, would be applied when the Australian Accounting Standards are the applicable financial reporting framework.  If an applicable financial reporting framework other than the Australian Accounting Standards is used, the illustrative report presented in the Appendix to this Auditing Standard may need to be adapted to reflect the application of the other financial reporting framework in the circumstances.

Auditor's responsibilities relating to ASA 701 (Ref: Para. 40(c))

A53.         The auditor may also consider it useful to provide additional information in the description of the auditor's responsibilities beyond what is required by paragraph 40(c).  For example, the auditor may make reference to the requirement in paragraph 9 of ASA 701 to determine the matters that required significant auditor attention in performing the audit, taking into account areas of higher assessed risk of material misstatement or significant risks identified in accordance with ASA 315; significant auditor judgements relating to areas in the financial report that involved significant management judgement, including accounting estimates that have been identified as having high estimation uncertainty; and the effects on the audit of significant events or transactions that occurred during the period.

Location of the description of the auditor's responsibilities for the audit of the financial report (Ref: Para. 41, 50(k))

A54.         Including the