Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p4
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 4/30)
Character Range: 22391–25544

to be material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.  Judgements about materiality are made in the light of surrounding circumstances, and are affected by the auditor's perception of the financial information needs of users of the financial report, and by the size or nature of a misstatement, or a combination of both.  The auditor's opinion deals with the financial report as a whole and therefore, the auditor is not responsible for the detection of misstatements that are not material to the financial report as a whole.

7.                   The Australian Auditing Standards contain objectives, requirements and application and other explanatory material that are designed to support the auditor in obtaining reasonable assurance.  The Australian Auditing Standards require that the auditor exercise professional judgement and maintain professional scepticism throughout the planning and performance of the audit and, among other things:

           * Identify and assess risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, the applicable financial reporting framework and the entity's system of internal control.

           * Obtain sufficient appropriate audit evidence about whether material misstatements exist, through designing and implementing appropriate responses to the assessed risks.

           * Form an opinion on the financial report based on conclusions drawn from the audit evidence obtained.

8.                   The form of opinion expressed by the auditor will depend upon the applicable financial reporting framework and any applicable law or regulation.  (Ref: Para. A15‑A16)

9.                   The auditor may also have certain other communication and reporting responsibilities to users, management, those charged with governance, or parties outside the entity, in relation to matters arising from the audit.  These may be established by the Australian Auditing Standards or by applicable law or regulation.[2]

Effective Date

10.               [Deleted by the AUASB.  Refer Aus 0.3]

Overall Objectives of the Auditor

11.               In conducting an audit of a financial report, the overall objectives of the auditor are:

(a)                To obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial report is prepared, in all material respects, in accordance with an applicable financial reporting framework; and

(b)                To report on the financial report, and communicate as required by the Australian Auditing Standards, in accordance with the auditor's findings.

12.               In all cases when reasonable assurance cannot be obtained and a qualified opinion in the auditor's report is insufficient in the circumstances for purposes of reporting to the intended users of the financial report, the Australian Auditing Standards require