Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p12
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 12/57)
Character Range: 41856–44941

enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

37.               When the financial report is prepared in accordance with a fair presentation framework, the description of responsibilities of management for the financial report in the auditor's review report shall refer to "the preparation and fair presentation of this financial report" or "the preparation of the financial report that gives a true and fair view", as appropriate in the circumstances.

38.               The report shall include a section with a heading "Auditor's Responsibilities for the Review of the Financial Report".  This section of the report shall:

(a)                State that the auditor is responsible for expressing a conclusion on the financial report based on the review;

(b)                State that a review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures; and

(c)                State that a review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable the auditor to obtain assurance that the auditor would become aware of all significant matters that might be identified in an audit, and that accordingly no audit opinion is expressed;

39.               The report shall include:

(a)                The date the auditor signs the auditor's review report;

(b)                The location in the country or jurisdiction where the auditor practices;

(c)                The name of the engagement partner where required by law or regulation[4]; and

(d)                The auditor's signature.

Departure from the Applicable Financial Reporting Framework

40.               The auditor shall express a qualified or adverse conclusion when a matter has come to the auditor's attention that causes the auditor to believe that a material adjustment should be made to the financial report for it to be prepared, in all material respects, in accordance with the applicable financial reporting framework.  The auditor shall amend the heading "Basis for Conclusion" to "Basis for Qualified Conclusion" or "Basis for Adverse Conclusion" and describe the nature of the departure and, if practicable, state the effects on the financial report.  If the effects or possible effects are incapable of being measured reliably, a statement to that effect and the reasons therefore shall be included in the Basis for Qualified Conclusion or Basis for Adverse Conclusion section of the report. The conclusion paragraph shall be headed "Qualified Conclusion" or "Adverse Conclusion" whichever is relevant.  (Ref: Para. A45)

41.               When the effect of the departure is so material and pervasive to the financial report that the auditor concludes a qualified conclusion is not adequate to disclose the misleading or incomplete nature of the financial report, the auditor shall express an adverse conclusion.  (Ref: Para. A46)

Limitation on