Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p30
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 30/57)
Character Range: 92366–95280

to withdraw from a review engagement.  The public sector auditor also may not be in the position to resign from the appointment to audit the annual financial report.  (Ref: Para. 30(b)‑30(c) and 37)

A63.         The auditor needs to communicate to those charged with governance and consider the implications for the review when a matter comes to the auditor's attention that causes the auditor to believe in the existence of fraud or actual or suspected non‑compliance by the entity with laws and regulations.  In the public sector, the auditor may be subject to statutory or other regulatory requirements to report such a matter to regulatory or other public authorities.  (Ref: Para. 32)

Documentation (Ref: Para. 55)

A64.         The auditor needs to prepare documentation that enables an experienced auditor having no previous connection with the engagement to understand the nature, timing and extent of the enquiries made and analytical and other review procedures applied, information obtained, and any significant matters considered during the performance of the review, including the disposition of such matters.
Appendix 1

(Ref: Para. A8)

EXAMPLE OF AN ENGAGEMENT LETTER FOR A REVIEW OF A FINANCIAL REPORT

The following letter is not intended to be a standard letter.  It is to be used as a guide only and will need to be adapted according to individual requirements and circumstances.  This illustrative letter is written in the context of a half‑year financial report under the Corporations Act 2001.

To [those charged with governance:[9]]

Scope

You have requested that we review the half‑year financial report[10] of [name of entity], which comprises the statement of financial position as at 31 December 20XX, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the six‑month[11] period ended on that date, and notes comprising  significant accounting policies and other explanatory information and the directors' declaration.  We are pleased to confirm our acceptance and our understanding of the terms and objectives of our engagement by means of this letter.

Our review will be conducted in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity with the objective of providing us with a basis for reporting whether we have become aware of any matter that makes us believe that the half‑year financial report does not comply with the Corporations Act 2001, including giving a true and fair view of the financial position and its performance, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulation 2001.[12]  Such a review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures and does not,