Document ID: chunk:federal_register_of_legislation:F2022C01203:reg:11:p4
Version: federal_register_of_legislation:F2022C01203
Segment Type: reg
Provision Reference: reg 11 (pt 4/7)
Character Range: 15665–18686

understanding of the company or entity and its environment, including the company's or entity's internal control, in accordance with the Australian Auditing Standards.  Accordingly, the auditor conducting a review, does so in accordance with ASRE 2410.[6]  ASRE 2410 is to be read in conjunction with ASA 101 Preamble to Australian Auditing Standards, as amended.

Company or Entity Not Previously Audited by the Auditor (Ref: Para. 10)

A2.             A company limited by guarantee, and entities reporting under the ACNC Act, or other applicable legislation or regulation, may engage an auditor, who has not conducted an audit of the company's or entity's previous financial report, to conduct a review of its financial report.  In such cases, that auditor will not have recently obtained an understanding of the company or entity and its environment, including the company's or entity's internal control, through compliance with Australian Auditing Standards.  Accordingly, that auditor conducts the review in accordance with ASRE 2400.[7]  ASRE 2400 is to be read in conjunction with ASA 100 Preamble to AUASB Standards.

General Principles (Ref: Para. 11)

A3.             When complying with the fundamental ethical principles in accordance with ASRE 2400, an auditor with no previous engagement experience with the company or entity, pays particular attention to the principles of professional competence and due care.

Appendix 1

(Ref: Para. 3)

EXAMPLE AUDITOR'S REVIEW REPORT

The following example auditor's review report is to be used as a guide only and will need to be adapted according to the review engagement requirements and circumstances.  It is based on the example review reports contained in the Appendices of ASRE 2400 and ASRE 2410.

The example auditor's review report is to be adapted as necessary for reviews under the ACNC Act or other applicable legislation or regulation.

Example 1: Financial report of a company limited by guarantee prepared under the Corporations Act 2001.  The financial reporting framework is designed to achieve fair presentation.

EXAMPLE OF AN UNMODIFIED REVIEW REPORT

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of [name of company/entity]

Report on the Financial Report

We [I][8] have reviewed the accompanying financial report of [name of company/entity], which comprises the statement of financial position as at 30 June 20XX, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.[9]

Directors'/Board of Management's[10] Responsibility for the Financial Report

The directors/board of management of the company/entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001/ACNC Act[11] and for such internal control as the