Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p13
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 13/30)
Character Range: 48827–52206

reporting frameworks that encompass primarily the financial reporting standards established by an organisation that is authorised or recognised to promulgate standards to be used by entities for preparing a general purpose financial report are often designed to achieve fair presentation, for example, Australian Accounting Standards issued by the AASB.

A11.         The requirements of the applicable financial reporting framework also determine what constitutes a financial report.  In the case of many frameworks, a financial report is intended to provide information about the financial position, financial performance and cash flows of an entity.  For such frameworks, a financial report[*] would include a complete set of financial statements[#] including the related notes, and an assertion statement by those responsible for the financial report.  For some other financial reporting frameworks, a single financial statement and the related notes might constitute a financial report:

           * [Deleted by the AUASB.  Refer Aus A10.1 and Aus A10.2]

           * Other examples of a single financial statement, each of which would include related notes, are a:

                   + Balance sheet.

                   + Statement of income or statement of operations.

                   + Statement of retained earnings.

                   + Statement of cash flows.

                   + Statement of assets and liabilities that does not include owner's equity.

                   + Statement of changes in owners' equity.

                   + Statement of revenue and expenses.

                   + Statement of operations by product lines.

                   + Aus A10.1 Statement of financial position.

                   +                 Statement of comprehensive income.

                   +                 Statement of recognised income and expense.

                    *                  Aus A10.2 Under the financial reporting framework defined in the Corporations Act 2001[†] and Australian Accounting Standards,[§] a financial report consists of financial statements for the year or the half‑year, notes to the financial statements, and the directors' declaration about the statements and notes.

A12.         ASA 210 establishes requirements and provides guidance on determining the acceptability of the applicable financial reporting framework.[5]  ASA 800 deals with special considerations when the financial report is prepared in accordance with a special purpose framework.[6]

A13.         Because of the significance of the premise to the conduct of an audit, the auditor is required to obtain the agreement of management and, where appropriate, those charged with governance that they acknowledge and understand that they have the responsibilities set out in paragraph A4 as a precondition for accepting the audit engagement.[7]

Considerations Specific to Audits in the Public Sector

A14.         The mandates for audits of financial reports of public sector entities may be broader than those of other entities.  As a result, the premise, relating to management's responsibilities, on which an audit of the financial report of a public sector entity is conducted may include additional responsibilities, such as the responsibility for the execution of transactions and events in accordance with law, regulation or other authority.[8]