Document ID: chunk:federal_register_of_legislation:F2023C01125:body:0:p14
Version: federal_register_of_legislation:F2023C01125
Segment Type: other
Provision Reference: 
Character Range: 38846–42121

penalties.

           * Payments for unspecified services or loans to consultants, related parties, employees or government employees.

           * Sales commissions or agent's fees that appear excessive in relation to those ordinarily paid by the entity or in its industry or to the services actually received.

           * Purchasing at prices significantly above or below market price.

           * Unusual payments in cash, purchases in the form of cashiers' cheques payable to bearer or transfers to numbered bank accounts.

           * Unusual transactions with companies registered in tax havens.

           * Payments for goods or services made other than to the country from which the goods or services originated.

           * Payments without proper exchange control documentation.

           * Existence of an information system which fails, whether by design or by accident, to provide an adequate audit trail or sufficient evidence.

           * Unauthorised transactions or improperly recorded transactions.

           * Adverse media comment.

Matters Relevant to the Auditor's Evaluation (Ref: Para. 19(b))

A19.         Matters relevant to the auditor's evaluation of the possible effect on the financial report include:

           * The potential financial consequences of identified or suspected non‑compliance with laws and regulations on the financial report including, for example, the imposition of fines, penalties, damages, threat of expropriation of assets, enforced discontinuation of operations, and litigation.

           * Whether the potential financial consequences require disclosure.

           * Whether the potential financial consequences are so serious as to call into question the fair presentation of the financial report, or otherwise make the financial report misleading.

Audit Procedures and Communicating Identified or Suspected Non‑Compliance with Management and Those Charged with Governance (Ref: Para. 20)

A20.         The auditor is required to discuss the suspected non‑compliance with the appropriate level of management and, where appropriate, those charged with governance, as they may be able to provide additional audit evidence.  For example, the auditor may confirm that management and, where appropriate, those charged with governance have the same understanding of the facts and circumstances relevant to transactions or events that have led to the  suspected non‑compliance with laws and regulations.

Aus A20.1 In the case of an audit conducted under the Corporations Act 2001, the auditor may need to consider the provisions relating to the protection for whistleblowers contained in Part 9.4AAA of the Corporations Act 2001 when communicating identified or suspected non-compliance with management and those charged with governance.

A21.         However, in some jurisdictions, law or regulation may restrict the auditor's communication of certain matters with management and those charged with governance.  Law or regulation may specifically prohibit a communication, or other action, that might prejudice an investigation by an appropriate authority into an actual, or suspected, illegal act, including alerting the entity, for example, when the auditor is required to report the identified or