Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p7
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 7/57)
Character Range: 27490–30609

the entity, which shall be recorded in writing by the auditor and forwarded to the entity.  When the review engagement is undertaken pursuant to legislation, the minimum applicable terms are those contained in the legislation.

Procedures for a Review of a Financial Report

Understanding the Entity and its Environment, Including its Internal Control

13.               The auditor shall obtain an understanding of the entity and its environment, the applicable financial reporting framework, and the entity's system of internal control, as it relates to the preparation of both the annual and interim or other financial reports, sufficient to plan and conduct the engagement so as to be able to:

(a)                identify the types of potential material misstatements and consider the likelihood of their occurrence; and

(b)                select the enquiries, analytical and other review procedures that will provide the auditor with a basis for reporting whether anything has come to the auditor's attention that causes the auditor to believe that the financial report is not prepared, in all material respects, in accordance with the applicable financial reporting framework.  (Ref: Para. A9‑A12)

14.               In order to plan and conduct a review of a financial report, a recently appointed auditor, who has not yet performed an audit of the annual financial report in accordance with Australian Auditing Standards, shall obtain an understanding of the entity and its environment, the applicable financial reporting framework, and the entity's system of internal control, as it relates to the preparation of both the annual and interim or other financial reports.  (Ref: Para. A13)

Materiality (Ref: Para. A14‑A18)

15.               The auditor shall consider materiality, using professional judgement, when:

(a)                determining the nature, timing and extent of review procedures; and

(b)                evaluating the effect of misstatements.

Enquiries, Analytical and Other Review Procedures

16.               The auditor shall make enquiries, primarily of persons responsible for financial and accounting matters, and perform analytical and other review procedures to enable the auditor to conclude whether, on the basis of the procedures performed, anything has come to the auditor's attention that causes the auditor to believe that the financial report is not prepared, in all material respects, in accordance with the applicable financial reporting framework.  (Ref: Para. A19‑A23)

17.               The auditor shall obtain evidence that the financial report agrees or reconciles with the underlying accounting records.  (Ref: Para. A24)

18.               The auditor shall enquire whether management has identified all events up to the date of the auditor's review report that may require adjustment to or disclosure in the financial report.  (Ref: Para. A25)

19.               The auditor shall enquire whether those charged with governance have changed their assessment of the entity's ability to continue as a going concern.  When, as the result of this enquiry or other