This Auditing Standard on Review Engagements deals with the responsibilities of the auditor to review the financial report of:
- A company limited by guarantee that has elected, under section 301(3) of the Corporations Act 2001, to have its financial report reviewed instead of audited.
- An entity that has elected, under the ACNC Act, to have its financial report reviewed instead of audited.
- An entity required to report under other applicable legislation or regulation.
Compilation Details
Auditing Standard on Review Engagements ASRE 2415 Review of a Financial Report Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation
(as Amended)
This compilation takes into account amendments made up to and including 1 July 2013 and was prepared on 1 July 2013 by the Auditing and Assurance Standards Board (AUASB).
This compilation is not a separate Auditing Standard on Review Engagements made by the AUASB. Instead, it is a representation of ASRE 2415 (June 2010) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
|
Standard |
Date made |
Operative Date |
|
ASRE 2415 [A] |
30 June 2010 |
|
|
ASA 2013‑1 [B] |
26 March 2013 |
1 July 2013 |
|
ASA 2013‑3 [C] |
1 July 2013 |
Table of Amendments
|
Paragraph affected |
How affected |
By … [paragraph] |
|
Title Page and Page Headers |
Title changed |
ASA 2013‑1[7] |
|
1 |
Application extended |
ASA 2013‑1[8] |
|
3 |
Consequential extension of scope |
ASA 2013‑1[9] |
|
4 |
Editorial change and reference deleted |
ASA 2013‑1[10] |
|
5 |
Consequential editorial change |
ASA 2013‑1[11] |
|
7 |
Consequential editorial change |
ASA 2013‑1[12] |
|
Sub‑heading (above 9) |
Consequential editorial change |
ASA 2013‑1[13] |
|
9 |
Consequential editorial changes and references deleted |
ASA 2013‑1[14] |
|
Footnote 2 |
Reference deleted |
ASA 2013‑1[15] |
|
10 |
Consequential editorial change |
ASA 2013‑1[16] |
|
11 |
Issue date added |
ASA 2013‑1[17] |
|
Footnote 3 |
Reference added |
ASA 2013‑1[18] |
|
Footnote 5 |
Consequential editorial change |
ASA 2013‑1[19] |
|
Footnote 6 |
Editorial correction |
ASA2013‑1[20] |
|
Sub‑heading (above A1) |
Consequential editorial change |
ASA 2013‑1[21] |
|
A1 |
Consequential editorial change and editorial correction |
ASA 2013‑1[22] |
|
Footnote 7 |
Reference deleted and editorial correction |
ASA 2013‑1[23] |
|
Sub‑heading (above A2) |
Consequential editorial change |
ASA 2013‑1[24] |
|
A2 |
Consequential editorial change |
ASA 2013‑1[25] |
|
Footnote 8 |
Reference added |
ASA 2013‑1[26] |
|
A3 |
Consequential editorial change |
ASA 2013‑1[27] |
|
Appendix 1 |
New introductory paragraph |
ASA 2013‑1[28] |
|
Appendix 1 |
Consequential editorial changes through the example review report |
ASA 2013‑1[29‑36] |
|
Footnotes 11 and 12 |
Renumbered |
ASA 2013‑1[37] |
|
Appendix 1 |
Amended |
ASA 2013‑3 [19] |
[A] Federal Register of Legislative Instruments – registration number F2010L01935,
9 July 2010
[B] Federal Register of Legislative Instruments – registration number F2013L00587,
2 April 2013
[C] Federal Register of Legislative Instruments – registration number F2013L01326,
1 July 2013
Preamble
Authority Statement
Auditing Standard on Review Engagements ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (as amended to 1 July 2013) is set out in paragraphs 1 to A3 and Appendix 1.
This Auditing Standard on Review Engagements is to be read in conjunction with ASA 101 Preamble to Australian Auditing Standards, which sets out the intentions of the AUASB on how the Australian Auditing Standards, operative for financial reporting periods commencing on or after 1 January 2010, are to be understood, interpreted and applied.
Conformity with International Standards on Review Engagements
This Auditing Standard on Review Engagements has been made for Australian legislative purposes and there is no equivalent International Standard on Review Engagements (ISRE) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
The Auditing and Assurance Standards Board (AUASB) made Auditing Standard on Review Engagements ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation, pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on 30 June 2010.
This compiled version of ASRE 2415 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 1 July 2013 (see Compilation Details).
Application
1
This Auditing Standard on Review Engagements applies to a review of a financial report for a financial year for:
- a company limited by guarantee in accordance with the Corporations Act 2001 (the Act); or
- an entity required to report under the Australian Charities and Not-for-Profit Commission Act 2012 (Cth) (the ACNC Act); or
- an entity required to report under other applicable legislation or regulation.
Introduction
Scope of this Auditing Standard on Review Engagements
3
This Auditing Standard on Review Engagements deals with the responsibilities of the auditor to review the financial report of:
- A company limited by guarantee that has elected, under section 301(3) of the Act, to have its financial report reviewed instead of audited. It also deals with the form and content of the review report, which is based on the example review reports contained within existing review standards.[1]
- An entity that has elected, under the ACNC Act, to have its financial report reviewed instead of audited.
- An entity required to report under other applicable legislation or regulation.
Effective Date
4
This Auditing Standard on Review Engagements does not apply to the review of a half‑year financial report under the Act. Refer ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, as amended.
See Appendix 1 for an illustrative example review report.
Objective
5
The objective of the auditor, is to plan and perform the review of a financial report prepared by a company limited by guarantee or an entity reporting under the ACNC Act or under other applicable legislation or regulation, to enable the auditor to express a conclusion whether, on the basis of the review, anything has come to the auditor’s attention that causes the auditor to believe that the financial report is not prepared, in all material respects, in accordance with the applicable financial reporting framework.
Definitions
6
For the purposes of this Auditing Standard on Review Engagements, the following terms have the meanings attributed below:
6(a)
A company limited by guarantee means a company limited by guarantee whose obligations are set out in section 285A of the Act.
6(b)
A registered company auditor includes an individual who meets the requirements of section 324BE of the Act.
6(c)
Revised Legislation means Corporations Amendment (Corporate Reporting Reform) Act 2010.
7
The term “auditor” as used in this Auditing Standard on Review Engagements, refers to a registered company auditor or an individual:
- taken to be a registered company auditor under section 324BE of the Act; and/or
- permitted under the ACNC Act to conduct reviews of a financial report; and/or
- permitted to conduct reviews of a financial report under other applicable legislation or regulation.
8
The term “financial report”, as used in this Auditing Standard on Review Engagements, refers to a financial report for a financial year. A financial report for a financial year may be for a period that is greater than or less than 12 months.
Requirements
Applicable Standards
Company or Entity Previously Audited
9
When a company limited by guarantee, or an entity reporting under the ACNC Act, or an entity reporting under other applicable legislation or regulation, elects to have its financial report reviewed instead of audited, an auditor who has conducted an audit of the previous financial report of the company or entity in accordance with the Australian Auditing Standards, shall, in the first financial reporting period under revised legislation, conduct the review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity as amended.[2] (Ref: Para. A1)
Company Not Previously Audited by the Auditor
10
When a company limited by guarantee, or an entity reporting under the ACNC Act, or an entity reporting under other applicable legislation or regulation, elects to have its financial report reviewed instead of audited, an auditor who has not conducted an audit of the previous financial report of the company or entity in accordance with the Australian Auditing Standards, shall conduct the review in accordance with ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity.[3] (Ref: Para. A2)
11
For purposes of this Auditing Standard, requirements under ASRE 2400 (issued August 2008) are identified in bold‑type in that standard.[4]
13
The auditor shall implement quality control procedures that are applicable to the individual engagement.[6]
For financial reporting periods commencing on or after 1 January 2010, see ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, issued October 2009, as amended.
See ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity, issued August 2008. For financial reporting periods commencing on or after 1 July 2013, see ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity, (issued March 2013).
See ASA 100 Preamble to AUASB Standards, paragraph 9(a).
See ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements, as amended.
See ASA 220 Quality Control for an Audit of a Financial Report and Other Historical Financial Information, as amended, which may be helpful in determining quality control procedures appropriate to a review engagement.
Application and Other Explanatory Material
Applicable Standards
Company or Entity Previously Audited (Ref: Para. 9)
A1
At the time of amendments to the Act there will be companies limited by guarantee and entities reporting under the ACNC Act, or other applicable legislation or regulation, that have been in existence for some time and will have appointed an auditor. Where that auditor has conducted an audit of the company’s or entity’s previous financial report, that auditor will have obtained an understanding of the company or entity and its environment, including the company’s or entity’s internal control, in accordance with the Australian Auditing Standards. Accordingly, the auditor conducting a review, does so in accordance with ASRE 2410.[7] ASRE 2410 is to be read in conjunction with ASA 101 Preamble to Australian Auditing Standards, as amended.
Company or Entity Not Previously Audited by the Auditor (Ref: Para. 10)
A2
A company limited by guarantee, and entities reporting under the ACNC Act, or other applicable legislation or regulation, may engage an auditor, who has not conducted an audit of the company’s or entity’s previous financial report, to conduct a review of its financial report. In such cases, that auditor will not have recently obtained an understanding of the company or entity and its environment, including the company’s or entity’s internal control, through compliance with Australian Auditing Standards. Accordingly, that auditor conducts the review in accordance with ASRE 2400.[8] ASRE 2400 is to be read in conjunction with ASA 100 Preamble to AUASB Standards.
General Principles
(Ref: Para 12)
A3
When complying with the fundamental ethical principles in accordance with ASRE 2400, an auditor with no previous engagement experience with the company or entity, pays particular attention to the principles of professional competence and due care.
For financial reporting periods commencing on or after 1 January 2010, refer ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, (issued October 2009), as amended.
See ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity, (issued August 2008). For financial reporting periods commencing on or after 1 July 2013, see ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity, (issued March 2013).
Example Auditor's Review Report
Appendix 1
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Download example Auditor's Review Report
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