Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p39
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 39/57)
Character Range: 117251–120535

Assess the relevance and impact of the results of the above procedures on the current period.

   5.         Determine materiality, exercising professional judgement, considering both qualitative and quantitative factors.

  6.       Enquire of persons responsible for financial reporting about the following:

      1. Accounting policies adopted and consider whether:

           1. they comply with the applicable financial reporting framework;

           2. they have been applied appropriately; and

           3. they have been applied consistently and, if not, consider whether disclosure has been made of any changes in the accounting policies.

      2. Policies and procedures used to assess asset impairment and any consequential estimation of recoverable amount.

      3. The policies and procedures to determine the fair value of financial assets and financial liabilities.

      4. New, unusual or complex situations that may have affected the financial report such as a business combination or disposal of a segment of the business.  Consider adequacy of additional note disclosures in the financial report.

      5. Plans to dispose of major assets or business segments.

      6. Material off‑balance sheet transactions, special purpose entities and other equity investments and related accounting treatment and disclosure.

      7. Knowledge of any allegations of fraud, or suspected fraud.

      8. Knowledge of any actual or possible significant non‑compliance with laws and regulations.

      9. Compliance with debt covenants.

     10. Material or unusual related party transactions.

     11. New or significant changes in commitments, contractual obligations.

    1. Obtain and read the minutes of meetings of shareholders, those charged with governance and other appropriate committees to identify matters that may affect the financial report, and enquire about matters dealt with at meetings for which minutes are not yet available that may affect the financial report.

    2. Enquire if actions taken at meetings of shareholders or those charged with governance that affect the financial report have been appropriately reflected therein.

    3. Ensure the financial report is agreed to the trial balance including disclosures.  If applicable, enquire as to whether all intercompany balances have been eliminated.

   4. Review other information included in the financial report and document findings.  Discuss any material misstatements of fact with the entity's management.

Cash

  11.   Obtain the bank reconciliations.  Enquire about any old or unusual reconciling items with client personnel to assess reasonableness.

  12.   Enquire about transfers between cash accounts for the period before and after the review date.

  13.   Enquire whether there are any restrictions on cash accounts.

Revenue and Receivables

  14.   Enquire about the accounting policies for recognising sales revenue and trade receivables and determine whether they have been consistently and appropriately applied.

  15.   Obtain a schedule of receivables and determine whether the total agrees with the trial balance.

  16.   Obtain and consider explanations of significant variations in account balances from previous periods or from those anticipated.

  17.