Document ID: chunk:federal_register_of_legislation:F2023C00337:reg:1:p18
Version: federal_register_of_legislation:F2023C00337
Segment Type: reg
Provision Reference: reg 1 (pt 18/23)
Character Range: 57252–60297

a basis for our opinion.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

     * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. [24]  However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial report that we have identified during the audit.

     * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

     * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern.  If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion.  Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.  However, future events or conditions may cause the Company to cease to continue as a going concern.

     * Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Australian Auditing Standards.

[The responsibilities of management and identification of the applicable financial reporting framework (for purposes of this example, it is assumed that the auditor has not determined that the law or regulation prescribes those responsibilities in appropriate terms; the descriptions in
paragraph 6(b) of this Auditing Standard are therefore used).]

Our audit will be conducted on the basis that [management and, where appropriate, those charged with governance][25] acknowledge and understand that they have responsibility:

    (a)           For the preparation of the financial report that gives a true and fair view in accordance with the Corporations Act 2001 and Australian Accounting Standards;[26]

    (b)           For such internal control as [management] determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to