Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p21
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 21/57)
Character Range: 67568–70677

the course of applying the review procedures;

(xii)           significant transactions occurring in the last several days of the period or the first several days of the next period;

(xiii)         knowledge of any fraud or suspected fraud affecting the entity involving:

                    * management;

                    * employees who have significant roles in internal control; or

                    * others where the fraud could have a material effect on the financial report; and

(xiv)          knowledge of any allegations of fraud, or suspected fraud, affecting the entity's financial information communicated by employees, former employees, analysts, regulators or others; and

(xv)            knowledge of any actual or suspected non‑compliance with laws and regulations that could have a material effect on the financial report. If the auditor becomes aware of any actual or suspected non‑compliance with laws and regulations ASA 250 Consideration of Laws and Regulations in an Audit of a Financial Report provides guidance. (Ref: Para. 20)

(e)                Applying analytical procedures to the financial report designed to identify relationships and individual items that appear to be unusual and that may reflect a material misstatement in the financial report.  Analytical procedures may include ratio analysis and statistical techniques such as trend analysis or regression analysis and may be performed manually or with the use of computer‑assisted auditing techniques.  Appendix 2 to this Auditing Standard contains examples of analytical procedures the auditor may consider when performing a review of a financial report.

(f)                 Reading the financial report and considering whether anything has come to the auditor's attention that causes the auditor to believe that the financial report is not in accordance with the applicable financial reporting framework.  (Ref: Para. 16)

    A21.         The auditor may perform many of the review procedures before or simultaneously with the entity's preparation of the financial report.  For example, it may be practicable to update the understanding of the entity and its environment, the applicable financial reporting framework, and the entity's system of internal control, and begin reading applicable minutes before the end of the period.  Performing some of the review procedures earlier in the period also permits early identification and consideration of significant accounting matters affecting the financial report.  (Ref: Para. 16)

A22.         The auditor performing a review of the financial report is also the auditor of the annual financial report of the entity.  For convenience and efficiency, the auditor may decide to perform certain audit procedures concurrently with the review of the financial report.  For example, information gained from reading the minutes of meetings of the board of directors in connection with the review of the financial report may also be used for the annual audit.  The auditor may decide also to perform, at the time of the review, auditing procedures that would need to