Document ID: chunk:federal_register_of_legislation:F2023C00329:reg:16:p5
Version: federal_register_of_legislation:F2023C00329
Segment Type: reg
Provision Reference: reg 16 (pt 5/23)
Character Range: 18887–21994

accordance with ASA 706.[5]  (Ref: Para. Aus A8.1, A10)

Prior Period Financial Report Audited by a Predecessor Auditor

17.               If the financial report of the prior period was audited by a predecessor auditor, in addition to expressing an opinion on the current period's financial report, the auditor shall state in an Other Matter paragraph:

(a)                that the financial report of the prior period was audited by a predecessor auditor;

(b)                the type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and

(c)                the date of that report,

    unless the predecessor auditor's report on the prior period's financial report is reissued with the financial report.

18.               If the auditor concludes that a material misstatement exists that affects the prior period financial report on which the predecessor auditor had previously reported without modification, the auditor shall communicate the misstatement with the appropriate level of management and, and unless all of those charged with governance are involved in managing the entity,[6] those charged with governance and request that the predecessor auditor be informed.  If the prior period financial report is amended, and the predecessor auditor agrees to issue a new auditor's report on the amended financial report of the prior period, the auditor shall report only on the current period.  (Ref: Para. Aus A8.1, Aus A12.1, A13)

Prior Period Financial Report Not Audited

19.               If the prior period financial report was not audited, the auditor shall state in an Other Matter paragraph that the comparative financial report is unaudited.  Such a statement does not, however, relieve the auditor of the requirement to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial report.[7] (Ref: Para. A12)

* * *

Application and Other Explanatory Material

Audit Procedures

Written Representations (Ref: Para. 9)

A1.             In the case of a comparative financial report, the written representations are requested for all periods referred to in the auditor's opinion because management needs to reaffirm that the written representations it previously made with respect to the prior period remain appropriate.  In the case of corresponding figures, the written representations are requested for the financial report of the current period only because the auditor's opinion is on that financial report, which includes the corresponding figures.  However, the auditor requests a specific written representation regarding any restatement made to correct a material misstatement in the prior period financial report that affects the comparative information.

Audit Reporting

Corresponding Figures

No Reference in Auditor's Opinion (Ref: Para. 10)

A2.             The auditor's opinion does not refer to the corresponding figures because the auditor's opinion is on the current period financial report as a whole, including the