Document ID: chunk:federal_register_of_legislation:F2023C00340:reg:10:p17
Version: federal_register_of_legislation:F2023C00340
Segment Type: reg
Provision Reference: reg 10 (pt 17/29)
Character Range: 52464–55503

accounting but adequate disclosure of a material uncertainty is not made in the financial report.

    A33.         In situations involving multiple uncertainties that are significant to the financial report as a whole, the auditor may consider it appropriate in extremely rare cases to express a disclaimer of opinion instead of including the statements required by paragraph 22.  ASA 705 provides guidance on this issue.[16]

         Aus A33.1 [Aus] Illustration 4A of Appendix 2 is an example of an auditor's report containing a disclaimer of opinion, when the auditor has not obtained sufficient appropriate audit evidence regarding the appropriateness of the management's use of the going concern basis of accounting.

Communication with Regulators (Ref: Para. 2223)

    A34.         When the auditor of a regulated entity considers that it may be necessary to include a reference to going concern matters in the auditor's report, the auditor may have a duty to communicate with the applicable regulatory, enforcement or supervisory authorities.

Management Unwilling to Make or Extend Its Assessment (Ref: Para. 24)

    A35.         In certain circumstances, the auditor may believe it necessary to request management to make or extend its assessment.  If management is unwilling to do so, a qualified opinion or a disclaimer of opinion in the auditor's report may be appropriate, because it may not be possible for the auditor to obtain sufficient appropriate audit evidence regarding management's use of the going concern basis of accounting in the preparation of the financial report, such as audit evidence regarding the existence of plans management has put in place or the existence of other mitigating factors.

Other Considerations (Ref. Para. 24)

         Aus A35.1 An auditor is required under the Corporations Act 2001[*] (the Act) to notify the Australian Securities and Investments Commission (ASIC) if the auditor, when conducting an audit, becomes aware of certain circumstances specified in the Act.  ASIC[#] provides guidance to help auditors comply with their obligations under the, such as reporting suspected insolvent trading.

[Aus] Appendix 1

(Ref: Para. Aus A21.1)

LINKING GOING CONCERN CONSIDERATIONS AND TYPES OF AUDIT OPINIONS

Appendix 2

(Ref: Para. A29, A31‑A32, Aus A33.1)

Illustrations of Auditor's Reports Relating to Going Concern

      * Illustration 1: [Deleted by the AUASB.  Refer [Aus] Illustration 1A].

      * [Aus] Illustration 1A: An auditor's report on a financial report of a single listed company prepared in accordance with the Corporations Act 2001 containing an unmodified opinion when the auditor has concluded that a material uncertainty exists and disclosure in the financial report is adequate.

      * Illustration 2: [Deleted by the AUASB.  Refer [Aus] Illustration 2A].

      * [Aus] Illustration 2A: An auditor's report on a financial report of a single listed company prepared in accordance with the Corporations Act 2001 containing a qualified opinion when