Document ID: chunk:federal_register_of_legislation:F2023C01128:reg:17:p14
Version: federal_register_of_legislation:F2023C01128
Segment Type: reg
Provision Reference: reg 17 (pt 14/25)
Character Range: 45424–48431

application of auditing standards, or fees for audit or other services.

           * Significant matters on which there was disagreement with management, except for initial differences of opinion because of incomplete facts or preliminary information that are later resolved by the auditor obtaining additional relevant facts or information.

Circumstances that Affect the Form and Content of the Auditor's Report (Ref: Para 16(d))

A23.         ASA 210 requires the auditor to agree the terms of the audit engagement with management or those charged with governance, as appropriate.[14]  The agreed terms of the audit engagement are required to be recorded in an audit engagement letter or other suitable form of written agreement and include, among other things, reference to the expected form and content of the auditor's report.[15]  As explained in paragraph A9, if the terms of engagement are not agreed with those charged with governance, the auditor may provide those charged with governance with a copy of the engagement letter to communicate about matters relevant to the audit.  The communication required by paragraph 16(d) is intended to inform those charged with governance about circumstances in which the auditor's report may differ from its expected form and content or may include additional information about the audit that was performed.

A24.         Circumstances in which the auditor is required or may otherwise consider it necessary to include additional information in the auditor's report in accordance with the Australian Auditing Standards, and for which communication with those charged with governance is required, include when:

           * The auditor expects to modify the opinion in the auditor's report in accordance with ASA 705.[16]

           * A material uncertainty related to going concern is reported in accordance with ASA 570.[17]

           * Key audit matters are communicated in accordance with ASA 701.[18]

           * The auditor considers it necessary to include an Emphasis of Matter paragraph or Other Matters paragraph in accordance with ASA 706[19] or is required to do so by other Australian Auditing Standards.

          * The auditor has concluded that there is an uncorrected material misstatement of the other information in accordance with ASA 720.[20]

    In such circumstances, the auditor may consider it useful to provide those charged with governance with a draft of the auditor's report to facilitate a discussion of how such matters will be addressed in the auditor's report.

A25.         In the rare circumstances that the auditor intends not to include the name of the engagement partner in the auditor's report in accordance with ASA 700, the auditor is required to discuss this intention with those charged with governance to inform the auditor's assessment of the likelihood and severity of a significant personal security threat.[21]  The auditor also may communicate with those charged with governance in circumstances when