Document ID: chunk:federal_register_of_legislation:F2023C01128:reg:17:p18
Version: federal_register_of_legislation:F2023C01128
Segment Type: reg
Provision Reference: reg 17 (pt 18/25)
Character Range: 56816–59865

provide third parties, for example, bankers or certain regulatory authorities, with copies of a written communication from the auditor.  In some cases, disclosure to third parties may be illegal or otherwise inappropriate.  When a written communication prepared for those charged with governance is provided to third parties, it may be important in the circumstances that the third parties be informed that the communication was not prepared with them in mind, for example, by stating in written communications with those charged with governance:

(a)                That the communication has been prepared for the sole use of those charged with governance and, where applicable, the group management and the group auditor, and should not be relied upon by third parties;

(b)                That no responsibility is assumed by the auditor to third parties; and

(c)                Any restrictions on disclosure or distribution to third parties.

A44.         In some jurisdictions the auditor may be required by law or regulation to, for example:

           * Notify a regulatory or enforcement body of certain matters communicated with those charged with governance.  For example, in some countries the auditor has a duty to report misstatements to authorities where management and those charged with governance fail to take corrective action;

           * Submit copies of certain reports prepared for those charged with governance to relevant regulatory or funding bodies, or other bodies such as a central authority in the case of some public sector entities; or

           * Make reports prepared for those charged with governance publicly available.

Aus A44.1 An auditor is required under the Corporations Act 2001 to notify the Australian Securities and Investments Commission (ASIC) if the auditor is aware of certain circumstances.[*]

A45.         Unless required by law or regulation to provide a third party with a copy of the auditor's written communications with those charged with governance, the auditor may need the prior consent of those charged with governance before doing so.

Forms of Communication (Ref: Para. 19)

A46.         Effective communication may involve structured presentations and written reports as well as less structured communications, including discussions.  The auditor may communicate matters other than those identified in paragraphs 19–20 either orally or in writing.  Written communications may include an engagement letter that is provided to those charged with governance.

A47.         In addition to the significance of a particular matter, the form of communication (e.g., whether to communicate orally or in writing, the extent of detail or summarisation in the communication, and whether to communicate in a structured or unstructured manner) may be affected by such factors as:

           * Whether a discussion of the matter will be included in the auditor's report.  For example, when key audit matters are communicated in the auditor's report, the auditor may consider it necessary to