Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p6
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 6/57)
Character Range: 24438–27744

but does not contain the acknowledgements in (i) or (ii) above.

Requirements

Performing a Review

6.                   The auditor who is engaged to perform a review of a financial report shall perform the review in accordance with this Auditing Standard.  (Ref: Para. A4)

7.                   Where in rare and exceptional circumstances, factors outside the auditor's control prevent the auditor from complying with an essential procedure contained within a relevant requirement in this Auditing Standard, the auditor shall:

(a)                if possible, perform appropriate alternative procedures; and

(b)                document in the working papers:

(i)                 the circumstances surrounding the inability to comply;

(ii)               the reasons for the inability to comply; and

(iii)             justification of how alternative procedures achieve the objectives of the requirement.

When the auditor is unable to perform appropriate alternative procedures, the auditor shall consider the implications for the auditor's review report.

General Principles of a Review of a Financial Report

8.                   The auditor shall comply with relevant ethical requirements relating to the audit of the annual financial report of the entity.  (Ref: Para. A5)

9.                   The auditor shall implement quality management procedures that are applicable to the individual engagement.  (Ref: Para. A6)

10.               The auditor shall plan and perform the review by exercising professional judgement and with an attitude of professional scepticism, recognising that circumstances may exist that cause the financial report to require a material adjustment for it to be prepared, in all material respects, in accordance with the applicable financial reporting framework.  (Ref: Para. A7)

Agreeing the Terms of the Engagement (Ref: Para. A8, A58 and A60)

Preconditions for a Review

    11.               The auditor shall, prior to agreeing the terms of the engagement, determine whether the financial reporting framework is acceptable and obtain agreement from management and, where appropriate, those charged with governance, that it acknowledges and understands its responsibility:

(a)                for the preparation of the financial report including, where relevant their fair presentation;

(b)                for such internal controls as management and, where appropriate, those charged with governance, deems necessary to enable the preparation of the financial report that is free from material misstatement; and

(c)                to provide the auditor with:

(i)                 access to information relevant to the preparation of the financial report;

(ii)               additional information that the auditor may request for the purposes of the review engagement; and

(iii)             unrestricted access to persons from whom the auditor determines it necessary to obtain evidence.

Agreement on Review Engagement Terms

12.               The auditor shall agree the terms of the engagement with the entity, which shall be recorded in writing by the auditor and forwarded to the entity.  When the review engagement is undertaken pursuant to legislation, the minimum applicable terms are those contained in the legislation.

Procedures for a Review of