Document ID: chunk:federal_register_of_legislation:F2023C00370:reg:9:p3
Version: federal_register_of_legislation:F2023C00370
Segment Type: reg
Provision Reference: reg 9 (pt 3/13)
Character Range: 11876–15170

whether audit procedures performed in the current period provide evidence relevant to the opening balances; or

            (iii)        Performing specific audit procedures to obtain evidence regarding the opening balances.

7.                   If the auditor obtains audit evidence that the opening balances contain misstatements that could materially affect the current period's financial report, the auditor shall perform such additional audit procedures as are appropriate in the circumstances to determine the effect on the current period's financial report.  If the auditor concludes that such misstatements exist in the current period's financial report, the auditor shall communicate the misstatements with the appropriate level of management and those charged with governance in accordance with ASA 450.[3]

Consistency of Accounting Policies

8.                   The auditor shall obtain sufficient appropriate audit evidence about whether the accounting policies reflected in the opening balances have been consistently applied in the current period's financial report, and whether changes in the accounting policies have been appropriately accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.

Relevant Information in the Predecessor Auditor's Report

9.                   If the prior period's financial report was audited by a predecessor auditor and there was a modification to the opinion, the auditor shall evaluate the effect of the matter giving rise to the modification in assessing the risks of material misstatement in the current period's financial report in accordance with ASA 315.[4]

Audit Conclusions and Reporting

Opening Balances

10.               If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening balances, the auditor shall express a qualified opinion or disclaim an opinion on the financial report, as appropriate, in accordance with ASA 705.[5]  (Ref: Para. A8)

11.               If the auditor concludes that the opening balances contain a misstatement that materially affects the current period's financial report, and the effect of the misstatement is not appropriately accounted for or not adequately presented or disclosed, the auditor shall express a qualified opinion or an adverse opinion, as appropriate, in accordance with ASA 705.

Consistency of Accounting Policies

12.               If the auditor concludes that:

(a)                the current period's accounting policies are not consistently applied in relation to opening balances in accordance with the applicable financial reporting framework; or

(b)                a change in accounting policies is not appropriately accounted for or not adequately presented or disclosed in accordance with the applicable financial reporting framework,

    the auditor shall express a qualified opinion or an adverse opinion as appropriate in accordance with ASA 705.

Modification to the Opinion in the Predecessor Auditor's Report

13.               If the predecessor auditor's opinion regarding the prior period's financial report included a modification to the auditor's opinion that remains relevant and material to the current period's financial report, the auditor shall modify