Document ID: chunk:federal_register_of_legislation:F2023C01125:body:0:p17
Version: federal_register_of_legislation:F2023C01125
Segment Type: other
Provision Reference: 
Character Range: 47608–50754

case of an audit conducted under the Corporations Act 2001, the auditor identifies non‑compliance with an Australian Accounting Standard, defects or irregularities in the financial report or deficiencies, failures or shortcomings in respect of section 307 of the Act, the auditor's report is to include the information required by the Act.  The auditor needs to consider any other relevant laws and regulations.  If the auditor is in doubt as to the proper interpretation of laws or regulations, or whether non‑compliance has in fact occurred, the auditor ordinarily seeks legal advice before expressing an opinion on the financial report.

A27.         Law or regulation may preclude public disclosure by either management, those charged with governance or the auditor about a specific matter.  For example, law or regulation may specifically prohibit a communication, or other action, that might prejudice an investigation by an appropriate authority into an actual, or suspected, illegal act, including a prohibition on alerting the entity.  When the auditor intends to communicate identified or suspected non‑compliance in the auditor's report under the circumstances set out in paragraph A26 or otherwise, such law or regulation may have implications for the auditor's ability to describe the matter in the auditor's report, or in some circumstances to issue the auditor's report.  In such cases, the auditor may consider obtaining legal advice to determine the appropriate course of action.

Reporting Identified or Suspected Non‑Compliance to an Appropriate Authority outside the Entity (Ref: Para. 29)

A28.         Reporting identified or suspected non‑compliance with laws and regulations to an appropriate authority outside the entity may be required or appropriate in the circumstances because:

(a)                Law, regulation or relevant ethical requirements require the auditor to report (see paragraph A29);

(b)                The auditor has determined reporting is an appropriate action to respond to identified or suspected non‑compliance in accordance with relevant ethical requirements (see paragraph A30); or

(c)                Law, regulation or relevant ethical requirements provide the auditor with the right to do so (see paragraph A31).

A29.         In some jurisdictions, the auditor may be required by law, regulation or relevant ethical requirements to report identified or suspected non‑compliance with laws and regulations to an appropriate authority outside the entity.  For example, in some jurisdictions, statutory requirements exist for the auditor of a financial institution to report the occurrence, or suspected occurrence, of non‑compliance with laws and regulations to a supervisory authority.  Also, misstatements may arise from non‑compliance with laws or regulations and, in some jurisdictions, the auditor may be required to report misstatements to an appropriate authority in cases where management or those charged with governance fail to take corrective action.

Aus A29.1 In certain circumstances, the auditor has a statutory responsibility to report instances of non‑compliance with laws