Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p5
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 5/53)
Character Range: 22559–26044

evidence has been obtained;[11]

(b)                The auditor's conclusion, in accordance with ASA 450, whether uncorrected misstatements are material, individually or in aggregate;[12] and

(c)                The evaluations required by paragraphs 12–15 of this Auditing Standard.

12.               The auditor shall evaluate whether the financial report is prepared, in all material respects, in accordance with the requirements of the applicable financial reporting framework.  This evaluation shall include consideration of the qualitative aspects of the entity's accounting practices, including indicators of possible bias in management's judgements.  (Ref: Para. A1–A3)

13.               In particular, the auditor shall evaluate whether, in view of the requirements of the applicable financial reporting framework:

(a)                The financial report appropriately discloses the significant accounting policies selected and applied.  In making this evaluation, the auditor shall consider the relevance of the accounting policies to the entity, and whether they have been presented in an understandable manner; (Ref: Para. A4)

(b)                The accounting policies selected and applied are consistent with the applicable financial reporting framework and are appropriate;

(c)                The accounting estimates and related disclosures made by management are reasonable;

(d)                The information presented in the financial report is relevant, reliable, comparable, and understandable.  In making this evaluation, the auditor shall consider whether:

               * The information that should have been included has been included, and whether such information is appropriately classified, aggregated or disaggregated, and characterised.

               * The overall presentation of the financial report have been undermined by including information that is not relevant or that obscures a proper understanding of the matters disclosed. (Ref: Para. A5);

(e)                The financial report provides adequate disclosures to enable the intended users to understand the effect of material transactions and events on the information conveyed in the financial report; and (Ref: Para. A6)

(f)                 The terminology used in the financial report, including the title of each financial statement, is appropriate.

14.               When the financial report is prepared in accordance with a fair presentation framework, the evaluation required by paragraphs 12–13 of this Auditing Standard shall also include whether the financial report achieves fair presentation.  The auditor's evaluation as to whether the financial report achieves fair presentation shall include consideration of: (Ref: Para A7‑A9)

(a)                The overall presentation, structure and content of the financial report; and

(b)                Whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

15.               The auditor shall evaluate whether the financial report adequately refers to or describes the applicable financial reporting framework.  (Ref: Para. A10–A15)

Form of Opinion

16.               The auditor shall express an unmodified opinion when the auditor concludes that the financial report is prepared, in all material respects, in accordance with the applicable financial reporting framework.

17.               If the auditor:

(a)                concludes that, based