Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p3
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 3/57)
Character Range: 15636–19026

terms of the engagement with the entity, which shall be recorded in writing by the auditor and forwarded to the entity.  When the review engagement is undertaken pursuant to legislation, the minimum applicable terms are those contained in the legislation (Ref: Para. 12).

           * The auditor shall consider materiality, using professional judgement, when:

                                determining the nature, timing and extent of review procedures; and

                                 evaluating the effect of misstatements (Ref: Para. 15).

           * When comparative information is included for the first time in a financial report, an auditor shall perform similar procedures on the comparative information as applied to the current period financial report (Ref: Para. 22).

           * If management and, where appropriate, those charged with governance refuse to provide a written representation that the auditor considers necessary, this constitutes a limitation of the scope of the auditor's work and the auditor shall express a qualified conclusion or a disclaimer of conclusion, as appropriate (Ref: Para. 25).

           * When, as a result of performing the review of a financial report, a matter comes to the auditor's attention that indicates the existence of fraud or non‑compliance with laws and regulations or suspected fraud or non-compliance with laws and regulations, has occurred in the entity, the auditor shall:

                                communicate the matter unless prohibited by law or regulation, as soon as practicable to those charged with governance and shall consider the implications for the review

                                request management's assessment of the effect (s) on the financial report;

                                consider the effect on the auditor's conclusion and the review report; and

                                determine whether law, regulation or relevant ethical requirements:

                    * require the auditor to report to an appropriate authority outside the entity;

                    * establish responsibilities under which reporting to an appropriate authority outside the entity may be appropriate in the circumstances. (Ref: Para. 31).

           * The following paragraphs contain requirements in relation to the auditor's review report and are in addition to those in ISRE 2410:

                                Paragraphs 33 to 39 relate to the content and order of the auditor's review report;

                                Paragraphs 40, 41, 48 and 50 relate to auditor's review reports which contain a modified review conclusion;

                                Paragraphs 49 to 51 relate to auditor's review reports with a going concern matter;

                                Paragraphs 53 and 54 relate to emphasis of matter and other matter paragraphs.

    2.                   This Auditing Standard includes explanatory guidance not contained within ISRE 2410 on:

           * Materiality (Ref: Para. A14 to A18); and

           * Comparatives (Ref: Para. A28 to A31).

    3.                   This Auditing Standard provides illustrative examples that differ in form and content from those contained in ISRE 2410, namely:

           * An engagement letter (Appendix 1).

           * A written representation letter (Appendix 1).

           *