Document ID: chunk:federal_register_of_legislation:F2021C01242:reg:5:p7
Version: federal_register_of_legislation:F2021C01242
Segment Type: reg
Provision Reference: reg 5 (pt 7/12)
Character Range: 24106–27082

report in circumstances where the auditor believes they need to be amended, the auditor shall notify management and, unless all of those charged with governance are involved in managing the entity,[7] those charged with governance, that the auditor will seek to prevent future reliance on the auditor's report.  If, despite such notification, management or those charged with governance do not take these necessary steps, the auditor shall take appropriate action to seek to prevent reliance on the auditor's report.  (Ref: Para. A20-Aus A20.1)

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Application and Other Explanatory Material

Scope of this Auditing Standard (Ref: Para. 1)

A1.             When the audited financial report is included in other documents subsequent to the issuance of the financial report (other than annual reports that would be within the scope of ASA 720), the auditor may have additional responsibilities relating to subsequent events that the auditor may need to consider, such as legal or regulatory requirements involving the offering of securities to the public in jurisdictions in which the securities are being offered.  For example, the auditor may be required to perform additional audit procedures to the date of the final offering document.  These procedures may include those referred to in paragraphs 6 and 7 performed up to a date at or near the effective date of the final offering document, and reading the offering document to assess whether the other information in the offering document is consistent with the financial information with which the auditor is associated.[8]

Definitions

Date of Approval of the Financial Report (Ref: Para. 5(a))

A2.             In some jurisdictions, law or regulation identifies the individuals or bodies (for example, management or those charged with governance) that are responsible for concluding that all the financial statements that comprise the financial report, including the related notes, have been prepared, and specifies the necessary approval process.  In other jurisdictions, the approval process is not prescribed in law or regulation and the entity follows its own procedures in preparing and finalising its financial report in view of its management and governance structures.  In some jurisdictions, final approval of the financial report by shareholders is required.  In these jurisdictions, final approval by shareholders is not necessary for the auditor to conclude that sufficient appropriate audit evidence on which to base the auditor's opinion on the financial report has been obtained.  The date of approval of the financial report for the purposes of the Australian Auditing Standards is the earlier date on which those with the recognised authority determine that all the financial statements that comprise the financial report, including the related notes, have been prepared and that those with the recognised authority have asserted that they have taken responsibility for that financial report.