Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p45
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 45/57)
Character Range: 134707–137807

understand the events and circumstances that have contributed to the current situation to determine whether the risk arising can be mitigated.

      2. Plans for future actions, such as plans or intentions to liquidate assets, borrow money or restructure debt, reduce or delay expenditures, or increase capital.

      3. Feasibility of the plans and whether those charged with governance believe that the outcome of these plans will improve the situation.

  Consider the adequacy of disclosure about such matters in the financial report. Auditors may also refer to ASA 570 Going Concern for guidance which may be helpful.

Evaluation of Misstatements

  92.   Ensure significant review differences have been summarised and their effect evaluated.

  93.   Ensure material adjustments identified are notified to management/ those charged with governance (as appropriate).

Written Representations

  94.   Obtain written representation from the directors/management/those charged with governance (as appropriate) to confirm matters arising during the course of the review engagement.

Documentation

  95.   Ensure that review documentation is sufficient and appropriate to provide a basis for the conclusion and to provide evidence of compliance with ASRE 2410.

Appendix 3

(Ref: Para. A44)

AN AUDITOR'S REVIEW REPORT UNDER THE
CORPORATIONS ACT 2001

Financial Report for a Half‑year

Introduction

    1. This Appendix has been prepared to assist an auditor, engaged to undertake a review engagement, by providing an example of an auditor's review report on a review of a financial report for a half‑year prepared in accordance with Part 2M.3 of the Corporations Act 2001 (The Act).  The example reflects both requirements of this Auditing Standard and the Act, but is not intended to require standard wording for the circumstances of particular modifications.

    2. This Appendix contains limited extracts from the Act and the Australian Accounting Standards in order to provide a context for the example report included in this Appendix.  These selected extracts are included in this Appendix only for the purpose stated and accordingly are not intended to be an exhaustive list of an auditor's obligations and requirements which are found elsewhere in this Auditing Standard, the Act, the Australian Accounting Standards and other relevant mandates.

    3. This Appendix:

    a)      Includes selected extracts from the Act and Australian Accounting Standards, and references to other relevant information, to provide a contextual framework; and

    b)      Provides an example of an auditor's review report.

Contextual Framework

Corporations Act 2001

The following selected extracts from the Act are included in this Appendix only to point to some of the important requirements of the Act that affect auditors engaged to undertake a review engagement in accordance with the Act.

  4. Section 302 states:

  "A disclosing entity[22] must:

    a)      prepare a financial report and directors' report for each half‑year; and

    b)      have the financial report audited or