Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p14
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 14/53)
Character Range: 48752–51913

or Other Matter paragraph that, in the particular circumstances, is required by the Australian Auditing Standards; and

(b)                The auditor's report includes, at a minimum, each of the elements set out in paragraphs 50(a)–(o) of this Auditing Standard when the auditor uses the layout or wording specified by the other auditing standards.  However, reference to "law or regulation" in paragraph 50(k) of this Auditing Standard shall be read as reference to the other auditing standards.  The auditor's report shall thereby identify such other auditing standards.

52.               When the auditor's report refers to both the other auditing standards and Australian Auditing Standards, the auditor's report shall identify the jurisdiction of origin of the other auditing standards.

Supplementary Information Presented with the Financial Report (Ref: Para. A78–A84)

53.               If supplementary information that is not required by the applicable financial reporting framework is presented with the audited financial report, the auditor shall evaluate whether, in the auditor's professional judgement, supplementary information is nevertheless an integral part of the financial report due to its nature or how it is presented.  When it is an integral part of the financial report, the supplementary information shall be covered by the auditor's opinion.

54.               If supplementary information that is not required by the applicable financial reporting framework is not considered an integral part of the audited financial report, the auditor shall evaluate whether such supplementary information is presented in a way that sufficiently and clearly differentiates it from the audited financial report.  If this is not the case, then the auditor shall ask management to change how the unaudited supplementary information is presented.  If management refuses to do so, the auditor shall identify the unaudited supplementary information and explain in the auditor's report that such supplementary information has not been audited.

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Application and Other Explanatory Material

Qualitative Aspects of the Entity's Accounting Practices (Ref: Para. 12)

A1.             Management makes a number of judgements about the amounts and disclosures in the financial report.

A2.             ASA 260 contains a discussion of the qualitative aspects of accounting practices.[20]  In considering the qualitative aspects of the entity's accounting practices, the auditor may become aware of possible bias in management's judgements.  The auditor may conclude that the cumulative effect of a lack of neutrality, together with the effect of uncorrected misstatements, causes the financial report as a whole to be materially misstated.  Indicators of a lack of neutrality that may affect the auditor's evaluation of whether the financial report as a whole is materially misstated include the following:

           * The selective correction of misstatements brought to management's attention during the audit (e.g., correcting misstatements with the effect of increasing reported earnings, but not correcting misstatements that have the effect