Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p21
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 21/53)
Character Range: 68774–71867

or in a single sentence (e.g., the financial report is presented fairly, in all material respects […], in accordance with Australian Accounting Standards and with the other applicable financial reporting framework).

(b)                If the financial report complies with one of the frameworks but fails to comply with the other framework, an unmodified opinion can be given that the financial report is prepared in accordance with the one framework (e.g., the Australian Accounting Standards) but a modified opinion given with regard to the other framework in accordance with ASA 705.

A31.         As indicated in paragraph A15, the financial report may represent compliance with the applicable financial reporting framework and, in addition, disclose the extent of compliance with another financial reporting framework.  Such supplementary information is covered by the auditor's opinion if it cannot be clearly differentiated from the financial report (see paragraphs 53–54 and related application material in paragraphs A78–A84).  Accordingly,

(a)                If the disclosure as to the compliance with the other framework is misleading, a modified opinion is expressed in accordance with ASA 705.

(b)                If the disclosure is not misleading, but the auditor judges it to be of such importance that it is fundamental to the users' understanding of the financial report, an Emphasis of Matter paragraph is added in accordance with ASA 706, drawing attention to the disclosure.

Basis for Opinion (Ref: Para. 28)

A32.         The Basis for Opinion section provides important context about the auditor's opinion.  Accordingly, this Auditing Standard requires the Basis for Opinion section to directly follow the Opinion section in the auditor's report.

A33.         The reference to the standards used conveys to the users of the auditor's report that the audit has been conducted in accordance with established standards.

Relevant ethical requirements (Ref: Para. Aus 28.1(c))

A34.          [Deleted by the AUASB.  Refer Aus A34.1][28]

Aus A34.1 The identification of the relevant ethical requirements increases transparency about those requirements relating to the particular audit engagement.  ASA 200 explains that the auditor is subject to the relevant ethical requirements as described in ASA 102.[*]

A35.         In some jurisdictions, relevant ethical requirements may exist in several different sources, such as the ethical code(s) and additional rules and requirements within law and regulation.  When the independence and other relevant ethical requirements are contained in a limited number of sources, the auditor may choose to name the relevant source(s) (e.g., the name of the code, rule or regulation applicable in the jurisdiction), or may refer to a term that is commonly understood and that appropriately summarises those sources (e.g., independence requirements for audits of private entities in Jurisdiction X).

A36.         Law or regulation, Australian Auditing Standards or the terms of an audit engagement may require the auditor to provide