Auditing Standard on Review Engagements ASRE ASRE Review of Historical Financial Information Other than a Financial Report, developed by. conducted our review in accordance with Standard on Review Engagements ASRE Review of Historical Financial Information Other than. have conducted a review in accordance with Standard on Review Engagements ASRE Review of. Historical Financial Information Other.
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In conducting our review, we have complied with the independence requirements of the Australian professional accounting bodies  ].
Standards on Review Engagements
Otherwise, no part of this compiled 24055 Standard on Review Engagements may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law. Where matters are disclosed in the financial report, the associated representation needs to be amended, for example:.
As a result of performing a review of a financial report, the auditor may become aware of matters that in the opinion of the auditor are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process.
For example, those charged with governance may present alternative measures of earnings that more positively portray financial performance than the financial report, and such alternative measures are given excessive prominence, or are not clearly defined, or not clearly reconciled to the financial report such that they are confusing and potentially misleading.
The paragraph would preferably be included after the conclusion paragraph and ordinarily refers to the fact that the conclusion is not qualified in this respect. The [title of those charged with governance] of the [type of entity] are responsible for the preparation and fair presentation of the [period] financial report in accordance with the [applicable financial reporting framework] and for such internal control as the directors [those charged with governance] determine is necessary to enable the preparation and fair presentation of the [period] financial report that is free from material misstatement, whether due to fraud or error.
In the public sector, the auditor may be subject to statutory or other regulatory requirements to report such a matter to regulatory or other public authorities. When the review engagement is undertaken pursuant to legislation, the minimum applicable terms are those contained in the legislation.
Standards on Review Engagements
In doing so, ordinarily the auditor considers the nature of any corrected misstatements, and any uncorrected misstatements aggregated by the auditor, any significant risks, including the risk of management override of controls, and significant accounting and any reporting matters that may be of continuing significance, such as material weaknesses in internal control.
Following consultation with constituents in Australia in accordance with normal exposure draft processes, the AUASB has decided that:.
Enquire whether there are adequate policies and procedures to determine the fair value of financial assets and financial liabilities. Consider adequacy of additional note disclosures in the financial report.
The auditor needs, when relevant, to consider materiality from the perspective of both the entity and the consolidated entity. If the information that the auditor believes is necessary for adequate disclosure is not included in the financial report, the auditor needs to modify the review report and, if practicable, include the necessary information in the review report.
Our responsibility is to express a conclusion on the [period] financial report based on our review.
The following illustrate some of those situations. Obtain a schedule of trade payables and determine whether the total agrees with the trial balance. The auditor shall obtain evidence that the financial report agrees or reconciles with the underlying accounting records. If the effects or possible effects are incapable of being measured reliably, a statement to that effect and the reasons axre shall be included in the basis for modification paragraph.
An interim financial report shall include, at a minimum, the following components:. A review of a financial report does not provide a basis for expressing an opinion whether the sare report gives a true and fair view, or is presented fairly, in all asr respects, in accordance with the applicable financial reporting framework.
Determine materiality, exercising professional judgement, considering both qualitative and quantitative factors.
Enquire whether there are any restrictions on cash accounts. An attitude of professional scepticism denotes that the auditor makes a critical assessment, with a questioning mind, of the validity of evidence obtained and is alert to evidence that contradicts or brings into question the reliability of documents or representations by management of the entity.
Departures from the applicable financial reporting framework, may result in an adverse conclusion. As this is the first axre that [name of entity] is required to prepare a [period] financial report and have it reviewed, the balance sheet, income statement, statement of changes in equity, cash flow statement, [statement or description of accounting policies  ] and other selected explanatory notes for the preceding corresponding [period] have not been reviewed or audited.
Departure from the Applicable Financial Reporting Framework Consider whether there are any indicators of impairment and whether any investment property was subject to recent valuations. Limitation on Scope Imposed by Management Determine whether all significant transactions have been accounted for appropriately.
Enquire whether accounts represent goods shipped on consignment and, if so, whether adjustments have been made to reverse these transactions and include the goods in inventory.
Enquire if actions taken at qsre of shareholders or those charged with governance that affect the financial report have been appropriately reflected therein. Enquire about the method for counting inventory.
Asre 2405 pdf
Where material, consider the reasonableness of interest expense in relation to 4205 balances. The procedures listed below are for illustrative purposes only.
Enquire whether the policies and procedures related to revenue recognition, including accrued income, have been consistently applied and whether there are any new or complex changes, including any changes in major contracts with customers or suppliers.
The terms asrr engagement to review a sare report can also be combined with the terms of engagement to audit the annual financial report. The auditor may decide also to perform, at the time of the review, auditing procedures that would need to be performed for the purpose of the audit of the annual financial report, for example, performing auditing procedures on:.
The determination of which level of management may also be informed is affected by the likelihood of collusion or the involvement of a member of management. Enquiries, Analytical and Other Review Procedures