Document ID: chunk:federal_register_of_legislation:F2023C01137:body:0:p12
Version: federal_register_of_legislation:F2023C01137
Segment Type: other
Provision Reference: 
Character Range: 32813–35770

obtain sufficient appropriate audit evidence due to a management-imposed limitation may be a matter that the auditor is required to report to the Australian Securities and Investments Commission (ASIC) under sections 311, 601HG or 990K of the Corporations Act 2001 (the Act). Particular attention should be given to section 312 of the Act which deals with assisting an auditor.

Determining the Type of Modification to the Auditor's Opinion

Consequence of an Inability to Obtain Sufficient Appropriate Audit Evidence Due to a Management‑Imposed Limitation after the Auditor Has Accepted the Engagement (Ref: Para. 13(b)(i)–14)

A13.         The practicality of withdrawing from the audit may depend on the stage of completion of the engagement at the time that management imposes the scope limitation.  If the auditor has substantially completed the audit, the auditor may decide to complete the audit to the extent possible, disclaim an opinion and explain the scope limitation within the Basis for Disclaimer of Opinion section prior to withdrawing.

A14.         In certain circumstances, withdrawal from the audit may not be possible if the auditor is required by law or regulation to continue the audit engagement.  This may be the case for an auditor that is appointed to audit the financial report of public sector entities.  It may also be the case in jurisdictions where the auditor is appointed to audit the financial report covering a specific period, or appointed for a specific period and is prohibited from withdrawing before the completion of the audit of those the financial report or before the end of that period, respectively.  The auditor may also consider it necessary to include an Other Matter paragraph in the auditor's report.[8]

A15.         When the auditor concludes that withdrawal from the audit is necessary because of a scope limitation, there may be a professional, legal or regulatory requirement for the auditor to communicate matters relating to the withdrawal from the engagement to regulators or the entity's owners.

         Aus A15.1 Under the Corporations Act 2001, the removal and resignation of auditors is covered by sections 329 and 331AC.

Other Considerations Relating to an Adverse Opinion or Disclaimer of Opinion (Ref: Para. 15)

A16.         The following are examples of reporting circumstances that would not contradict the auditor's adverse opinion or disclaimer of opinion:

           * The expression of an unmodified opinion on the financial report prepared under a given financial reporting framework and, within the same report, the expression of an adverse opinion on the same financial report under a different financial reporting framework.[9]

           * The expression of a disclaimer of opinion regarding the results of operations, and cash flows, where relevant, and an unmodified opinion regarding the financial position (see ASA 510[10]).  In this case, the auditor has not expressed