Document ID: chunk:federal_register_of_legislation:F2023C00329:reg:16:p7
Version: federal_register_of_legislation:F2023C00329
Segment Type: reg
Provision Reference: reg 16 (pt 7/23)
Character Range: 24450–27447

opening balances, the auditor is required by ASA 705[8] to express a qualified opinion or disclaim an opinion on the financial report, as appropriate, in accordance with ASA 705.  If the auditor encountered significant difficulty in obtaining sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial report, the auditor may determine this to be a key audit matter in accordance with ASA 701.[9]

Comparative Financial Reports

Aus A8.1 In respect of audit engagements conducted under the Corporations Act 2001, the auditor's opinion refers to a financial report for the current period, which include corresponding figures, and not to comparative financial report(s).  Consequently, paragraphs 15, 16, 17, 18 and 19, and related paragraphs A9, A10, A11, and A12 have no application to audit engagements under the Corporations Act 2001.

Reference in Auditor's Opinion (Ref: Para. 15)

A9.             Because the auditor's report on comparative financial reports applies to the financial report for each of the periods presented, the auditor may express a qualified opinion or an adverse opinion, disclaim an opinion, or include an Emphasis of Matter paragraph with respect to one or more periods, while expressing a different auditor's opinion on the financial report of the other period.

A10.         An illustrative example of the auditor's report if the auditor is required to report on both the current and the prior period financial reports in connection with the current year's audit and the prior period included a modified opinion and the matter giving rise to the modification is unresolved, is contained in Illustration 4 of Appendix 1.

Opinion on the Prior Period Financial Report Different from Previous Opinion (Ref: Para. 16)

A11.         When reporting on the prior period financial report in connection with the current period's audit, the opinion expressed on the prior period financial report may be different from the opinion previously expressed if the auditor becomes aware of circumstances or events that materially affect the financial report of a prior period during the course of the audit of the current period.  In some jurisdictions, the auditor may have additional reporting responsibilities designed to prevent future reliance on the auditor's previously issued report on the prior period financial report.

Prior Period Financial Report not Audited (Ref: Para. 19)

A12.         If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening balances, the auditor is required by ASA 705 to express a qualified opinion or disclaim an opinion on the financial report, as appropriate, in accordance with ASA 705.   If the auditor encountered significant difficulty in obtaining sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial report, the auditor