Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p8
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 8/53)
Character Range: 31656–34781

Where applicable, the auditor shall report in accordance with ASA 720.[14]

Responsibilities for the Financial Report

33.               The auditor's report shall include a section with a heading "Responsibilities of Management for the Financial Report."  The auditor's report shall use the term that is appropriate in the context of the legal framework in the particular jurisdiction and need not refer specifically to "management".  In some jurisdictions, the appropriate reference may be to those charged with governance.  (Ref: Para. A44)

34.               This section of the auditor's report shall describe management's responsibility for: (Ref: Para. A45–A48)

(a)                Preparing the financial report in accordance with the applicable financial reporting framework, and for such internal control as management determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error; and

(b)                Assessing the entity's ability to continue as a going concern[15] and whether the use of the going concern basis of accounting is appropriate as well as disclosing, if applicable, matters relating to going concern.  The explanation of management's responsibility for this assessment shall include a description of when the use of the going concern basis of accounting is appropriate.  (Ref: Para. A48)

35.               This section of the auditor's report shall also identify those responsible for the oversight of the financial reporting process, when those responsible for such oversight are different from those who fulfill the responsibilities described in paragraph 34 of this Auditing Standard.  In this case, the heading of this section shall also refer to "Those Charged with Governance" or such term that is appropriate in the context of the legal framework in the particular jurisdiction.  (Ref: Para. A49)

36.               When the financial report is prepared in accordance with a fair presentation framework, the description of responsibilities for the financial report in the auditor's report shall refer to "the preparation and fair presentation of this financial report" or "the preparation of the financial report that gives a true and fair view," as appropriate in the circumstances.

Auditor's Responsibilities for the Audit of the Financial Report

37.               The auditor's report shall include a section with the heading "Auditor's Responsibilities for the Audit of the Financial Report."

38.               This section of the auditor's report shall: (Ref: Para. A50)

(a)                State that the objectives of the auditor are to:

(i)                 Obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error; and

(ii)               Issue an auditor's report that includes the auditor's opinion.  (Ref: Para. A51)

(b)                State that reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always