Document ID: chunk:federal_register_of_legislation:F2023C00341:reg:4:p38
Version: federal_register_of_legislation:F2023C00341
Segment Type: reg
Provision Reference: reg 4 (pt 38/42)
Character Range: 116773–119744

(Ref: Para. A35)

Examples of a Component Auditor's Confirmations

The following is not intended to be a standard letter.  Confirmations may vary from one component auditor to another and from one period to the next.

Confirmations often are obtained before work on the financial information of the component commences.

[Component Auditor Letterhead]

[Date]

[To Group Engagement Partner]

This letter is provided in connection with your audit of the group financial report of [name of parent] for the year ended [date] for the purpose of expressing an opinion on whether the group financial report presents fairly, in all material respects (or gives a true and fair view of) the financial position of the group as of [date] and [of] its financial performance and cash flows for the year then ended in accordance with [indicate applicable financial reporting framework].

We acknowledge receipt of your instructions dated [date], requesting us to perform the specified work on the financial information of [name of component] for the year ended [date].

We confirm that:

      1. We will be able to comply with the instructions.  / We advise you that we will not be able to comply with the following instructions [specify instructions] for the following reasons [specify reasons].

2.                   The instructions are clear and we understand them.  / We would appreciate it if you could clarify the following instructions [specify instructions].

3.                   We will co‑operate with you and provide you with access to relevant audit documentation.

We acknowledge that:

      1. The financial information of [name of component] will be included in the group financial report of [name of parent].

2.                   You may consider it necessary to be involved in the work you have requested us to perform on the financial information of [name of component] for the year ended [date].

3.                   You intend to evaluate and, if considered appropriate, use our work for the audit of the group financial report of [name of parent].

In connection with the work that we will perform on the financial information of [name of component], a [describe component, for example, wholly‑owned subsidiary, subsidiary, joint venture, investee accounted for by the equity or cost methods of accounting] of [name of parent], we confirm the following:

      1. We have an understanding of [indicate relevant ethical requirements] that is sufficient to fulfill our responsibilities in the audit of the group financial reports, and will comply therewith.  In particular, and with respect to [name of parent] and the other components in the group, we are independent within the meaning of [indicate relevant ethical requirements] and comply with the applicable requirements of [refer to rules] promulgated by [name of regulatory agency].

2.                   We have an understanding of Australian Auditing Standards and [indicate other national standards