Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p29
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 29/57)
Character Range: 89597–92614

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 of the assurance practitioner's report that the financial statements are prepared in accordance with a special purpose framework and that, as a result, the financial statements may not be suitable for another purpose.

Other Considerations

A58.         The terms of the engagement include agreement by those charged with governance that, where any document containing a financial report indicates that the financial report has been reviewed by the entity's auditor, the auditor's review report will be also included in the document.  If those charged with governance have not included the auditor's review report in the document, ordinarily the auditor considers seeking legal advice to assist in determining the appropriate course of action in the circumstances.  (Ref: Para. 12)

A59.         If the auditor has issued a modified auditor's review report and those charged with governance issue the financial report without including the modified auditor's review report in the document containing the financial report, ordinarily the auditor considers seeking legal advice to assist in determining the appropriate course of action in the circumstances, and the possibility of resigning from the appointment to audit the annual financial report.

Considerations Specific to Public Sector Entities

A60.         The auditor needs to communicate the terms of engagement to the entity subject to the review. When communicating the terms of engagement,  an engagement letter helps to avoid misunderstandings regarding the nature of the engagement and, in particular, the objective and scope of the review, management's responsibilities, the extent of the auditor's responsibilities, the assurance obtained, and the nature and form of the report.  Law or regulation governing review engagements in the public sector ordinarily mandates the appointment of the auditor.  Nevertheless, an engagement letter setting out the matters referred to in paragraph A8 may be useful to both the public sector auditor and the client.  Public sector auditors, therefore, consider agreeing with the client the terms of a review engagement by way of an engagement letter.  (Ref: Para. 12)

A61.         In the public sector, the auditor's statutory audit obligation may extend to other work, such as a review of interim financial information.

A62.         Where this is the case, the public sector auditor cannot avoid such an obligation and, consequently, may not be in a position not to accept, or to withdraw from a review engagement.  The public sector auditor also may not be in the position to resign from the appointment to audit the annual financial report.  (Ref: Para. 30(b)‑30(c) and 37)

A63.         The auditor needs to communicate to