Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p28
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 28/57)
Character Range: 86947–89884

the auditor's work is clearly confined to one or more specific matters that, while material, are not in the auditor's judgement pervasive to the financial report.  In such circumstances,  the auditor needs to modify the auditor's review report by indicating that, except for the effects of the matter which is described in the Basis for Qualified Conclusion section of the auditor's review report, and the review was conducted in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity.  Illustrative auditor's review reports with a qualified conclusion are set out in Appendix 4.

A52.         The auditor may have expressed a qualified opinion on the audit of the latest annual financial report because of a limitation on the scope of that audit. The auditor needs to consider whether that limitation on scope still exists and, if so, the implications for the auditor's review report.

Going Concern and Material Uncertainties (Ref: Para. 49 and 50)

A53.         The auditor may have alerted users to the existence of a material uncertainty relating to an event or condition that casts significant doubt on the entity's ability to continue as a going concern by adding a separate section under the heading Material Uncertainty Related to Going Concern to a prior audit or auditor's review report.  If the material uncertainty still exists and adequate disclosure is made in the financial report, the auditor needs to continue to alert users by adding a "Material Uncertainty Related to Going Concern" section to the auditor's review report to highlight the continued material uncertainty.

A54.         If, as a result of enquiries or other review procedures, a material uncertainty relating to an event or condition comes to the auditor's attention that casts significant doubt on the entity's ability to continue as a going concern, and adequate disclosure is made in the financial report, the auditor alerts users by adding a "Material Uncertainty Related to Going Concern" section to the auditor's review report.

A55.         A Material Uncertainty Related to Going Concern section is preferably included after the Basis for Conclusion paragraph. ASA 570 Going Concern provides information that the auditor may find helpful in considering going concern in the context of the review engagement.

Emphasis of Matter Paragraphs

    A56.         Ordinarily, a significant uncertainty in relation to any other matter, the resolution of which may materially affect the financial report, would warrant an emphasis of matter paragraph in the auditor's review report. An emphasis of matter paragraph is preferably included after the Basis for Conclusion paragraph, or after the Material Uncertainty Related to Going Concern section if relevant.

A57.         The auditor's review report on special purpose financial statements shall include an Emphasis of Matter paragraph alerting users