Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p7
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 7/30)
Character Range: 30984–34177

in past time periods or about economic conditions or circumstances at points in time in the past.

(h)                Management means the person(s) with executive responsibility for the conduct of the entity's operations.  For some entities in some jurisdictions, management includes some or all of those charged with governance, for example, executive members of a governance board, or an owner‑manager.

(i)                 Misstatement means a difference between the amount, classification, presentation, or disclosure of a reported financial report item and the amount, classification, presentation, or disclosure that is required for the item to be in accordance with the applicable financial reporting framework.  Misstatements can arise from error or fraud.

         Where the auditor expresses an opinion on whether the financial report is presented fairly, in all material respects, or gives a true and fair view, misstatements also include those adjustments of amounts, classifications, presentation, or disclosures that, in the auditor's judgement, are necessary for the financial report to be presented fairly, in all material respects, or to give a true and fair view.

(j)                 Premise, relating to the responsibilities of management and, where appropriate, those charged with governance, on which an audit is conducted means that management and, where appropriate, those charged with governance have acknowledged and understand that they have the following responsibilities that are fundamental to the conduct of an audit in accordance with Australian Auditing Standards.  That is, responsibility:

(i)                 For the preparation of a financial report in accordance with the applicable financial reporting framework, including where relevant, their fair presentation;

(ii)               For such internal control as management and, where appropriate, those charged with governance determine is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error, and

(iii)             To provide the auditor with:

                  a. Access to all information, of which management and, where appropriate, those charged with governance are aware that is relevant to the preparation of a financial report such as records, documentation and other matters;

                  b. Additional information that the auditor may request from management and, where appropriate, those charged with governance, for the purpose of the audit; and

                  c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence.

         In the case of a fair presentation framework, (i) above may be restated as "for the preparation and fair presentation of a financial report in accordance with the financial reporting framework", or "for the preparation of a financial report that gives a true and fair view in accordance with the financial reporting framework."

         The "premise, relating to the responsibilities of management and, where appropriate, those charged with governance, on which an audit is conducted" may also be referred