Document ID: chunk:federal_register_of_legislation:F2023C00341:reg:4:p30
Version: federal_register_of_legislation:F2023C00341
Segment Type: reg
Provision Reference: reg 4 (pt 30/42)
Character Range: 94103–97138

to in paragraph 49(a)‑(b) may be communicated after the group engagement team has determined the work to be performed on the financial information of the components.  On the other hand, the matter referred to in paragraph 49(c) may be communicated at the end of the audit, and the matters referred to in paragraph 49(d)‑(e) may be communicated when they occur.

Appendix 1

(Ref: Para. A19)

Illustrations of Auditors' Reports with Modifications to the Opinion—General Purpose Financial Reports

       * Illustration 1: An auditor's report containing a qualified opinion due to the auditor's inability to obtain sufficient appropriate audit evidence.

       * [Aus] Illustration 1A: An auditor's report containing a qualified opinion due to the auditor's inability to obtain sufficient appropriate audit evidence (under the Corporations Act 2001).

    Note: Throughout these illustrative auditors' reports, the Opinion section has been positioned first in accordance with ASA 700, and the Basis for Opinion section is positioned immediately after the Opinion section.  Also, the first and last sentence that was included in the extant auditor's responsibilities section is now subsumed as part of the new Basis for Opinion section.

Example Auditor's Report
General Purpose Financial Report—Qualified Opinion
The group engagement team is not able to obtain sufficient appropriate audit evidence on which to base the group audit opinion
(Fair Presentation Framework)
Illustration 1:

For purposes of this illustrative auditor's report the following circumstances are assumed:

     * Audit of the financial report of an entity other than a listed entity and its subsidiaries (the Group).  The audit is a group audit (i.e., ASA 600 applies).

     * The financial report is prepared by management of the entity in accordance with Australian Accounting Standards (a general purpose framework).  The financial report is not prepared under the Corporations Act 2001.

     * The terms of the audit engagement reflect the description of management's responsibility for the financial report in ASA 210.

     * The group engagement team is unable to obtain sufficient appropriate audit evidence relating to a significant component accounted for by the equity method (recognised at $15 million in the statement of financial position, which reflects total assets of $60 million) because the group engagement team did not have access to the accounting records, management, or auditor of the component.

     * The group engagement team has read the audited financial report of the component as of 30 June 20X1, including the auditor's report thereon, and considered related financial information kept by group management in relation to the component.

     * In the group engagement partner's judgement, the effect on the financial report of this inability to obtain sufficient appropriate audit evidence is material but not pervasive.[25]

     * The relevant ethical requirements that apply to the audit are the Accounting Professional &