Document ID: chunk:federal_register_of_legislation:F2023C01138:reg:4:p5
Version: federal_register_of_legislation:F2023C01138
Segment Type: reg
Provision Reference: reg 4 (pt 5/43)
Character Range: 18893–22146

Information Appears to Be Materially Misstated

16.                 If the auditor identifies that a material inconsistency appears to exist (or becomes aware that the other information appears to be materially misstated), the auditor shall discuss the matter with management and, if necessary, perform other procedures to conclude whether: (Ref: Para. A39–A43)

(a)                A material misstatement of the other information exists;

(b)                A material misstatement of the financial report exists; or

(c)                The auditor's understanding of the entity and its environment needs to be updated.

Responding When the Auditor Concludes That a Material Misstatement of the Other Information Exists

17.               If the auditor concludes that a material misstatement of the other information exists, the auditor shall request management to correct the other information.  If management:

(a)                Agrees to make the correction, the auditor shall determine that the correction has been made; or

(b)                Refuses to make the correction, the auditor shall communicate the matter with those charged with governance and request that the correction be made.

18.                 If the auditor concludes that a material misstatement exists in other information obtained prior to the date of the auditor's report, and the other information is not corrected after communicating with those charged with governance, the auditor shall take appropriate action, including: (Ref: Para. A44)

(a)                 Considering the implications for the auditor's report and communicating with those charged with governance about how the auditor plans to address the material misstatement in the auditor's report (see paragraph 22(e)(ii) of this Auditing Standard); or (Ref: Para. A45)

(b)                 Withdrawing from the engagement, where withdrawal is possible under applicable law or regulation.  (Ref: Para. A46–A47)

19.               If the auditor concludes that a material misstatement exists in other information obtained after the date of the auditor's report, the auditor shall:

(a)                If the other information is corrected, perform the procedures necessary in the circumstances; or (Ref: Para. A48)

(b)                 If the other information is not corrected after communicating with those charged with governance, take appropriate action considering the auditor's legal rights and obligations, to seek to have the uncorrected material misstatement appropriately brought to the attention of users for whom the auditor's report is prepared.  (Ref: Para. A49–Aus A50.1)

Responding When a Material Misstatement in the Financial Report Exists or the Auditor's Understanding of the Entity and Its Environment Needs to Be Updated

20.               If, as a result of performing the procedures in paragraphs 14–15 of this Auditing Standard, the auditor concludes that a material misstatement in the financial report exists or the auditor's understanding of the entity and its environment needs to be updated, the auditor shall respond appropriately in accordance with the other Australian Auditing Standards.  (Ref: Para. A51)

Reporting

21.                 The auditor's report shall include a