Document ID: chunk:federal_register_of_legislation:F2023C00337:reg:1:p4
Version: federal_register_of_legislation:F2023C00337
Segment Type: reg
Provision Reference: reg 1 (pt 4/23)
Character Range: 18257–21179

the preparation of the financial report; and

(e)                Reference to the expected form and content of any reports to be issued by the auditor and a statement that there may be circumstances in which a report may differ from its expected form and content. (Ref: Para. A25)

11.               If law or regulation prescribes in sufficient detail the terms of the audit engagement referred to in paragraph 10 of this Auditing Standard, the auditor need not record them in a written agreement, except for the fact that such law or regulation applies and that management acknowledges and understands its responsibilities as set out in paragraph 6(b) of this Auditing Standard.  (Ref: Para. A23, A27‑A29)

12.               If law or regulation prescribes responsibilities of management similar to those  described in paragraph 6(b) of this Auditing Standard, the auditor may determine that the law or regulation includes responsibilities that, in the auditor's judgement, are equivalent in effect to those set out in that paragraph.  For such responsibilities that are equivalent, the auditor may use the wording of the law or regulation to describe them in the written agreement.  For those responsibilities that are not prescribed by law or regulation such that their effect is equivalent, the written agreement shall use the description in paragraph 6(b) of this Auditing Standard.  (Ref: Para. A27)

Recurring Audits

13.               On recurring audits, the auditor shall assess whether circumstances require the terms of the audit engagement to be revised and whether there is a need to remind the entity of the existing terms of the audit engagement.  (Ref: Para. A30)

Acceptance of a Change in the Terms of the Audit Engagement

14.               The auditor shall not agree to a change in the terms of the audit engagement where there is no reasonable justification for doing so.  (Ref: Para. A31-A33)

15.               If, prior to completing the audit engagement, the auditor is requested to change the audit engagement to an engagement that conveys a lower level of assurance, the auditor shall determine whether there is reasonable justification for doing so.  (Ref: Para. A34-A35)

16.               If the terms of the audit engagement are changed, the auditor and management shall agree on and record the new terms of the engagement in an engagement letter or other suitable form of written agreement.

17.               If the auditor is unable to agree to a change of the terms of the audit engagement and is not permitted by management to continue the original audit engagement, the auditor shall:

(a)                Withdraw from the audit engagement where possible under applicable law or regulation; and

(b)                Determine whether there is any obligation, either contractual or otherwise, to report the circumstances to other parties, such as those charged with governance, owners