Document ID: chunk:federal_register_of_legislation:F2021C01247:reg:10:p9
Version: federal_register_of_legislation:F2021C01247
Segment Type: reg
Provision Reference: reg 10 (pt 9/21)
Character Range: 29478–32466

to the Auditor's Report on the General Purpose Financial Report

A19.         The auditor may deem it appropriate to refer, in an Other Matter paragraph in the auditor's report on the special purpose financial report, to the auditor's report on the general purpose financial report or to matter(s) reported therein (see ASA 706).[24]  For example, the auditor may consider it appropriate to refer in the auditor's report on the special purpose financial report to a Material Uncertainty Related to Going Concern section included in the auditor's report on the general purpose financial report.

Alerting Readers that the Financial report is Prepared in Accordance with a Special Purpose Framework (Ref: Para. 14)

A20.         The special purpose financial report may be used for purposes other than those for which they were intended.  For example, a regulator may require certain entities to place the special purpose financial report on public record.  To avoid misunderstandings, the auditor alerts users of the auditor's report by including an Emphasis of Matter paragraph explaining that the financial report is prepared in accordance with a special purpose framework and, therefore, may not be suitable for another purpose.  ASA 706 requires this paragraph to be included within a separate section of the auditor's report with an appropriate heading that includes the term "Emphasis of Matter".[25]

Restriction on Distribution or Use (Ref: Para. 14)

A21.         In addition to the alert required by paragraph 14, the auditor may consider it appropriate to indicate that the auditor's report is intended solely for the specific users.  Depending on the law or regulation of the particular jurisdiction, this may be achieved by restricting the distribution or use of the auditor's report.  In these circumstances, the paragraph referred to in paragraph 14 may be expanded to include these other matters, and the heading modified accordingly (see illustrations in the Appendix to this Auditing Standard).

Appendix 1

(Ref: Para. A14)

Illustrations of Independent Auditor's Reports on a Special Purpose Financial Report

Illustration 1: An auditor's report on a financial report of an entity other than a listed entity prepared in accordance with the financial reporting provisions of a contract (for purposes of this illustration, a compliance framework).

Illustration 2: An auditor's report on a financial report of an entity other than a listed entity prepared in accordance with the tax basis of accounting in Jurisdiction X (for purposes of this illustration, a compliance framework).

Illustration 3:[Deleted by the AUASB.]

[Aus] Illustration 4: [Deleted by the AUASB as a result of changes to the Australian Accounting Standards impacting the ability for certain for-profit entities to prepare Special Purpose Financial Statements[#]]

[Aus] Illustration 5: An auditor's report on a financial report prepared by a not-for-profit incorporated association in accordance