Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p15
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 15/57)
Character Range: 50205–53252

in the auditor's judgement, is of such importance that it is fundamental to users' understanding of the financial report.

53.               When the auditor includes an Emphasis of Matter paragraph in the auditor's review report the auditor shall:

(a)                Include the paragraph within a separate section of the auditor's review report with an appropriate heading that includes the term "Emphasis of Matter";

(b)                Include a clear reference to the matter being emphasised and to where relevant disclosures that fully describe the matter can be found in the financial report.  The paragraph shall refer only to information presented or disclosed in the financial report; and

(c)                Indicate that the auditor's review conclusion is not modified in respect of the matter emphasised.

Other Matter Paragraph

54.               The auditor shall consider including an Other Matter paragraph in the auditor's review report to communicate a matter other than those that are presented or disclosed in the financial report, that in the auditor's judgement is relevant to users' understanding of the review, the auditor's responsibilities, or the auditor's review report, if not prohibited by law or regulation. When including an Other Matter paragraph in the auditor's review report, the auditor shall include a separate section with the heading "Other Matter", or other appropriate heading.

Documentation (Ref: Para. A64)

55.               The auditor shall prepare review documentation that is sufficient and appropriate to provide a basis for the auditor's conclusion, and to provide evidence that the review was performed in accordance with this Auditing Standard and applicable legal and regulatory requirements.

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Application and Other Explanatory Material

Objective (Ref: Para. 4)

A1.             Under paragraph 13, the auditor needs to make enquiries, and perform analytical and other review procedures in order to reduce to a limited level the risk of expressing an inappropriate conclusion when the financial report is materially misstated.

A2.             The objective of a review of a financial report differs significantly from that of an audit conducted in accordance with Australian Auditing Standards. A review of a financial report does not provide a basis for expressing an opinion whether the financial report gives a true and fair view, or is presented fairly, or has not been prepared, in all material respects, in accordance with the applicable financial reporting framework.

A3.             A review, in contrast to an audit, is not designed to obtain reasonable assurance that the financial report is free from material misstatement. A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review may bring significant matters affecting the financial report to the auditor's attention, but it does not provide all of the evidence that would be required in an audit.