Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p11
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 11/30)
Character Range: 42830–46052

the future viability of the entity nor the efficiency or effectiveness with which management has conducted the affairs of the entity.  In some jurisdictions, however, applicable law or regulation may require auditors to provide opinions on other specific matters, such as the effectiveness of internal control, or the consistency of a separate management report with the financial report.  While the Australian Auditing Standards include requirements and guidance in relation to such matters to the extent that they are relevant to forming an opinion on the financial report, the auditor would be required to undertake further work if the auditor had additional responsibilities to provide such opinions.

Preparation of the Financial Report (Ref: Para. 4)

A5.             Law or regulation may establish the responsibilities of management and, where appropriate, those charged with governance in relation to financial reporting.  However, the extent of these responsibilities, or the way in which they are described, may differ across jurisdictions.  Despite these differences, an audit in accordance with Australian Auditing Standards is conducted on the premise that management and, where appropriate, those charged with governance have acknowledged and understand that they have responsibility:

(a)                For the preparation of a financial report in accordance with the applicable financial reporting framework, including where relevant their fair presentation;

(b)                For such internal control as management and, where appropriate, those charged with governance determine is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error; and

(c)                To provide the auditor with:

(i)                 Access to all information of which management and, where appropriate, those charged with governance are aware that is relevant to the preparation of the financial report such as records, documentation and other matters;

(ii)               Additional information that the auditor may request from management and, where appropriate, those charged with governance for the purpose of the audit; and

(iii)             Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence.

A6.             The preparation of a financial report by management and, where appropriate, those charged with governance requires:

           * The identification of the applicable financial reporting framework, in the context of any relevant laws or regulations.

           * The preparation of a financial report in accordance with that framework.

           * The inclusion of an adequate description of that framework in the financial report.

    The preparation of a financial report requires management to exercise judgement in making accounting estimates that are reasonable in the circumstances, as well as to select and apply appropriate accounting policies.  These judgements are made in the context of the applicable financial reporting framework.

A7.             The financial report may be prepared in accordance with a financial reporting framework designed