Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p31
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 31/53)
Character Range: 96359–99388

minimum elements to be included in the auditor's report to enable a reference to the Australian Auditing Standards .  In those circumstances, the requirements in paragraphs 21‑49 that are not included in paragraph 50(a)–(o) do not need to be applied including, for example, the required ordering of the Opinion and Basis for Opinion sections.

A71.         Where specific requirements in a particular jurisdiction do not conflict with Australian Auditing Standards, the layout and wording required by paragraphs 21–49 assist users of the auditor's report in more readily recognising the auditor's report as a report of an audit conducted in accordance with Australian Auditing Standards.

Information Required by ASA 701 (Ref: Para. 50(h))

A72.         Law or regulation may require the auditor to provide additional information about the audit that was performed, which may include information that is consistent with the objectives of ASA 701, or may prescribe the nature and extent of communication about such matters.

A73.         The Australian Auditing Standards do not override law or regulation that governs an audit of a financial report.  When ASA 701 is applicable, reference can only be made to Australian Auditing Standards in the auditor's report if, in applying the law or regulation, the section required by paragraph 50(h) is not inconsistent with the reporting requirements in ASA 701.  In such circumstances, the auditor may need to tailor certain aspects of the communication of key audit matters in the auditor's report required by ASA 701, for example by:

           * Modifying the heading "Key Audit Matters", if law or regulation prescribes a specific heading;

           * Explaining why the information required by law or regulation is being provided in the auditor's report, for example by making a reference to the relevant law or regulation and describing how that information relates to the key audit matters;

           * Where law or regulation prescribes the nature and extent of the description, supplementing the prescribed information to achieve an overall description of each key audit matter that is consistent with the requirement in paragraph 13 of ASA 701.

A74.         ASA 210 deals with circumstances where law or regulation of the relevant jurisdiction prescribes the layout or wording of the auditor's report in terms that are significantly different from the requirements of Australian Auditing Standards, which in particular includes the auditor's opinion.  In these circumstances, ASA 210 requires the auditor to evaluate:

(a)                Whether users might misunderstand the assurance obtained from the audit of the financial report and, if so,

(b)                Whether additional explanation in the auditor's report can mitigate possible misunderstanding.

If the auditor concludes that additional explanation in the auditor's report cannot mitigate possible misunderstanding, ASA 210 requires the auditor not to accept the audit engagement, unless required by law