Document ID: chunk:federal_register_of_legislation:F2021C01242:reg:5:p12
Version: federal_register_of_legislation:F2021C01242
Segment Type: reg
Provision Reference: reg 5 (pt 12/12)
Character Range: 37610–39751

charged with governance, have failed to take the necessary steps to prevent reliance on the auditor's report on the financial report previously issued by the entity despite the auditor's prior notification that the auditor will take action to seek to prevent such reliance, the auditor's course of action depends upon the auditor's legal rights and obligations.  Consequently, the auditor may consider it appropriate to seek legal advice.

Aus A20.1 In addition to considering if it is appropriate to obtain legal advice in accordance with paragraph A20, other possible actions the auditor may consider include:

             (a)                Notifying management and those charged with governance that the auditor's report must no longer be associated with the financial report.

             (b)                If applicable, notifying the appropriate authority having jurisdiction over the entity that the auditor's report should no longer be relied upon, and requesting the authority to take steps to provide appropriate disclosure.

             (c)                Notifying users of the financial report that the auditor's report should no longer be relied upon. Such notifications could be through direct communication or by broader means such as through a public notice.
[*]  Early adoption permitted.
[1]  See ASA 720 The Auditor's Responsibilities Relating to Other Information.
[2]  See, for example, Accounting Standard AASB 110 Events After the Reporting Date.
[3]  See ASA 700 Forming an Opinion and Reporting on a Financial Report, paragraph A38.
[4]  See ASA 580 Written Representations.
[5]  See ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report.
[6]  See ASA 705 Modifications to the Opinion in the Independent Auditor's Report.
[7]  See ASA 260 Communication with Those Charged with Governance, paragraph 13.
[8]  See ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, paragraph 2.
[9]  See ASA 700, paragraph 49.
[10]  See ASA 210 Agreeing the Terms of Audit Engagements, paragraph A23.