Document ID: chunk:federal_register_of_legislation:F2022C01203:reg:11:p3
Version: federal_register_of_legislation:F2022C01203
Segment Type: reg
Provision Reference: reg 11 (pt 3/7)
Character Range: 12926–15937

or an individual:

(a)                taken to be a registered company auditor under section 324BE of the Act; and/or

(b)                permitted under the ACNC Act to conduct reviews of a financial report; and/or

(c)                permitted to conduct reviews of a financial report under other applicable legislation or regulation.

8.                   The term "financial report", as used in this Auditing Standard on Review Engagements, refers to a financial report for a financial year.  A financial report for a financial year may be for a period that is greater than or less than 12 months.

Requirements

Applicable Standards

Company or Entity Previously Audited

9.                   When a company limited by guarantee, or an entity reporting under the ACNC Act, or an entity reporting under other applicable legislation or regulation, elects to have its financial report reviewed instead of audited, an auditor who has conducted an audit of the previous financial report of the company or entity in accordance with the Australian Auditing Standards, shall, in the first financial reporting period under revised legislation, conduct the review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity as amended.[2] (Ref: Para. A1)

Company Not Previously Audited by the Auditor

10.               When a company limited by guarantee, or an entity reporting under the ACNC Act, or an entity reporting under other applicable legislation or regulation, elects to have its financial report reviewed instead of audited, an auditor who has not conducted an audit of the previous financial report of the company or entity in accordance with the Australian Auditing Standards, shall conduct the review in accordance with ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity.[3] (Ref: Para. A2)

General Principles

11.               The auditor shall comply with relevant ethical requirements relating to the review of the financial report.[4] (Ref: Para. A3)

12.               The auditor shall implement the firm's policies or procedures applicable to the individual engagement.[5]

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Application and Other Explanatory Material

Applicable Standards

Company or Entity Previously Audited (Ref: Para. 9)

A1.             At the time of amendments to the Act there will be companies limited by guarantee and entities reporting under the ACNC Act, or other applicable legislation or regulation, that have been in existence for some time and will have appointed an auditor.  Where that auditor has conducted an audit of the company's or entity's previous financial report, that auditor will have obtained an understanding of the company or entity and its environment, including the company's or entity's internal control, in accordance with the Australian Auditing Standards.  Accordingly, the auditor conducting a review, does so in accordance with ASRE 2410.[6]  ASRE 2410 is to