Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p43
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 43/57)
Character Range: 129025–132161

of other liabilities and determine whether the total agrees with the trial balance.

  67.   Compare major balances of related expense accounts with similar accounts for prior periods.

  68.   Enquire about approvals for such other liabilities, terms of payment, compliance with terms, collateral and classification.

  69.   Enquire about other liabilities to assess whether the methodology and assumptions adopted are consistent with prior periods.  Enquire whether there are any unusual trends and developments affecting accounting estimates.

  70.   Enquire as to the nature of amounts included in contingent liabilities and commitments.

  71.   Enquire whether any actual or contingent liabilities exist which have not been recognised in the accounts.  If so, enquire with management and/or those charged with governance whether provisions need to be made in the accounts or whether disclosure should be made in the notes to the financial report.

Income and Other Taxes

  72.   Enquire from management if there were any events, including disputes with taxation authorities, which could have a significant effect on the taxes payable by the entity.  Examine correspondence in relation to any significant matters arising and assess whether events have been reflected appropriately in the financial report.

  73.   Consider the tax expense in relation to the entity's income for the period.

  74.   Enquire from management as to the adequacy of the recognised deferred and current tax assets and/or liabilities including provisions in respect of prior periods.

Financial Instruments

  75.   Enquire or update knowledge and understanding with persons responsible for financial reporting (including any treasury specialist), of what derivatives are in place, what accounting policies are applied to these derivatives and whether they have been consistently applied.

  76.   Enquire whether any hedges have been entered into for speculative purposes.

  77.   Enquire whether there are adequate policies and procedures to determine the fair value of financial assets and financial liabilities.

  78.   Enquire whether there are any sales and transfers that may call into question the classification of investments in securities, including management's intent and ability with respect to the remaining securities classified as held to maturity.

Employee Share Plans

  79.   Enquire about any new employee share plans or changes to existing plans, and where employee share plans are material, assess whether the accounting methodology has been consistently applied.

Subsequent Events

  80.   Obtain from management the latest financial report and compare it with the financial report being reviewed or with those for comparable periods from the preceding year.

  81.   Enquire about events after the balance sheet reporting date that would have a material effect on the financial report under review and, in particular, enquire whether:

      1. any substantial commitments or uncertainties have arisen subsequent to the balance sheet date;

      2. any significant changes in the share capital, long‑term debt or working