Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p24
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 24/53)
Character Range: 77138–80117

may be circumstances when it is appropriate for the auditor to add to the descriptions of the responsibilities of management and those charged with governance in paragraphs 34–35 to reflect additional responsibilities that are relevant to the preparation of the financial report in the context of the particular jurisdiction or the nature of the entity.

A46.         ASA 210 requires the auditor to agree management's responsibilities in an engagement letter or other suitable form of written agreement.[35]  ASA 210 provides some flexibility in doing so, by explaining that, if law or regulation prescribes the responsibilities of management and, where appropriate, those charged with governance in relation to financial reporting, the auditor may determine that the law or regulation includes responsibilities that, in the auditor's judgement, are equivalent in effect to those set out in ASA 210.  For such responsibilities that are equivalent, the auditor may use the wording of the law or regulation to describe them in the engagement letter or other suitable form of written agreement.  In such cases, this wording may also be used in the auditor's report to describe the responsibilities as required by paragraph 34(a).  In other circumstances, including where the auditor decides not to use the wording of law or regulation as incorporated in the engagement letter, the wording in paragraph 34(a) is used.  In addition to including the description of management's responsibilities in the auditor's report as required by paragraph 34, the auditor may refer to a more detailed description of these responsibilities by including a reference to where such information may be obtained (e.g., in the annual report of the entity or a website of an appropriate authority).

A47.         In some jurisdictions, law or regulation prescribing management's responsibilities may specifically refer to a responsibility for the adequacy of accounting books and records, or accounting system.  As books, records and systems are an integral part of internal control (as defined in ASA 315[36]), the descriptions in ASA 210 and in paragraph 34 do not make specific reference to them.

A48.         The Appendix to this Auditing Standard provides illustrations of how the requirement in paragraph 34(b) would be applied when the Australian Accounting Standards are the applicable financial reporting framework.  If an applicable financial reporting framework other than the Australian Accounting Standards is used, the illustrative statements featured in the Appendix to this Auditing Standard may need to be adapted to reflect the application of the other financial reporting framework in the circumstances.

Oversight of the financial reporting process (Ref: Para. 35)

A49.         When some, but not all, of the individuals involved in the oversight of the financial reporting process are also involved in preparing the financial report, the description as required by paragraph 35 may