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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The auditor shall consider materiality, using professional judgement, when:. Enquire about events after the balance sheet reporting date that would have a material effect on the financial report under review and, in particular, enquire whether:. Procedures for performing a review of a financial report ordinarily are limited to making enquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures, rather than corroborating information obtained concerning matters relating to the financial report.
Discuss the policy in respect of capitalisation of interest and whether it is in accordance with Australian Accounting Standards. There are no violations or possible violations of laws or regulations the ase of which should be considered for disclosure in the financial report or as a basis for recording an expense.
Standards on Review Engagements
The procedures listed below are for illustrative purposes only. Determine materiality, exercising professional judgement, considering both qualitative and quantitative factors.
The auditor needs to consider whether that limitation on scope still exists and, if so, the implications for the review report. A review of a financial report, in contrast to an audit engagement, is not designed to obtain reasonable sare that the financial report is free from material misstatement.
Obtain explanations of significant variations with management.
Consider the effect thereof on the financial report and any provision for loss. The auditor shall comply with relevant ethical requirements relating to the audit of the annual financial report of the entity. Where matters are disclosed in the financial report, the associated representation needs to be amended, for example:. Property Plant and Equipment and Depreciation Prepared by the Auditing and Assurance Standards Board. If the material uncertainty xsre exists and adequate disclosure is made in the financial report, the auditor needs to modify the review report on the current financial report by adding a paragraph asrr highlight the continued material uncertainty.
If management refuses to do so, the auditor ase unable to complete the review and express a conclusion. A44 Limitation on Scope Imposed by Management The auditor also needs to obtain a sufficient understanding of internal control as it relates to the preparation of the financial report subject to review, as it may differ from internal control as it relates to the preparation of the annual financial report.
Federal Register of Legislation – Australian Government
The auditor shall issue a written report that contains the following:. 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. Obtain and read the minutes of asrre of shareholders, those charged with governance and appropriate committees subsequent to the balance sheet date and consider any impact of the financial report and disclosures.
Obtain a schedule of other liabilities and determine whether the total agrees with the trial balance. This is not in accordance with [applicable financial reporting framework]. Enquire whether payables to shareholders, those charged with governance and other related parties are separately disclosed. Enquire whether there assre adequate policies and procedures to determine the fair value of financial assets and financial liabilities.
The entity has satisfactory title to all assets, and there are no liens or encumbrances on such assets that have not been disclosed nor has any asset been pledged as collateral. We acknowledge our responsibility for ensuring that the financial report is in accordance with [applicable financial reporting framework].
Asre 2405 pdf
Click here to save this PDF file. In planning a review of a financial report, the auditor needs to update this understanding. Consider classification, measurement and disclosure in respect of material or significant acquisitions.
The auditor needs to prepare documentation that enables an experienced auditor having no previous connection with the engagement to understand the nature, timing and extent of the enquiries made and analytical and other review procedures applied, information obtained, and any significant matters considered during the performance of the review, including the disposition of such matters.
Enquire whether receivables have been pledged, factored or discounted and determine whether they have been properly accounted for. Basis for Qualified Conclusion As this is the first year 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.
An interim financial report shall include, at a minimum, the following components: Enquire whether any inventory is pledged, stored at other locations or on consignment to others and consider whether such transactions have been accounted for appropriately. Enquire about approvals for such other liabilities, terms of payment, compliance with terms, collateral and classification.
The auditor may obtain evidence that the financial report agrees or reconciles with the underlying accounting records by tracing the financial report to:. The requirements of the applicable financial reporting framework determine the form and content of the financial report. Enquire from management if there were any events, including disputes with taxation authorities, which could have a significant effect on the taxes payable by the entity. Ensure significant review differences have been summarised and their effect evaluated.
Assess the relevance and impact of the results of the above procedures on the current period. The communication ordinarily covers the following matters:.
For example, comparing sources of revenue and the and the cost of sales in the current financial report with corresponding information in:. Consider the need for adjustments or disclosure in the financial report. The scope of a review of a financial report is substantially less than the scope of an audit conducted in accordance with Auditing Standards whose objective is the expression of an opinion regarding the financial report and accordingly, we shall express no such opinion.
If the applicable financial reporting framework contains a definition of materiality, it will ordinarily provide a frame of reference to sare auditor when determining materiality for planning and performing the review. Example of a Representation Letter. Additional procedures may include: The auditor shall enquire whether management has identified all events up to the date of the review report that may require adjustment to or disclosure in the financial report.