Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p5
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 5/30)
Character Range: 25269–28424

12.               In all cases when reasonable assurance cannot be obtained and a qualified opinion in the auditor's report is insufficient in the circumstances for purposes of reporting to the intended users of the financial report, the Australian Auditing Standards require that the auditor disclaim an opinion or withdraw (or resign)[3] from the engagement, where withdrawal is possible under applicable law or regulation.

Definitions

13.               For the purposes of this Auditing Standard, the following terms have the meanings attributed below:

(a)                Applicable financial reporting framework means the financial reporting framework adopted by management and, where appropriate, those charged with governance in the preparation of the financial report that is acceptable in view of the nature of the entity and the objective of the financial report, or that is required by law or regulation.

         The term "fair presentation framework" means a financial reporting framework that requires compliance with the requirements of the framework and:

(i)                 Acknowledges explicitly or implicitly that, to achieve fair presentation of the financial report, it may be necessary for management to provide disclosures beyond those specifically required by the framework; or

(ii)               Acknowledges explicitly that it may be necessary for management to depart from a requirement of the framework to achieve fair presentation of the financial report.  Such departures are expected to be necessary only in extremely rare circumstances.

         The term "compliance framework" means a financial reporting framework that requires compliance with the requirements of the framework, but does not contain the acknowledgements in (i) or (ii) above.

(b)                Audit evidence means information used by the auditor in arriving at the conclusions on which the auditor's opinion is based.  Audit evidence includes both information contained in the accounting records underlying the financial report and other information.  For purposes of the Australian Auditing Standards:

(i)                 Sufficiency of audit evidence is the measure of the quantity of audit evidence.  The quantity of the audit evidence needed is affected by the auditor's assessment of the risks of material misstatement and also by the quality of such audit evidence.

(ii)               Appropriateness of audit evidence is the measure of the quality of audit evidence; that is, its relevance and its reliability in providing support for the conclusions on which the auditor's opinion is based.

(c)                Audit risk means the risk that the auditor expresses an inappropriate audit opinion when the financial report is materially misstated.  Audit risk is a function of the risks of material misstatement and detection risk.

Aus 13.1 A complete set of financial statements means financial statements and related notes as determined by the requirements of the applicable financial reporting framework.  For example, a complete set of financial statements as described in Accounting Standard AASB 101[*] includes:

(a) a statement