Circumstances When Requests for Access Are Made ( GS 011 April 2009 )

Circumstances When Requests for Access Are Made

The table below outlines:

common circumstances when requests for access to an external auditor’s audit working papers may arise;
specific paragraphs in this Guidance Statement that could be considered in deciding whether access will be granted; and
the example letter(s) auditors may use for each specific circumstance listed.

Circumstances	Relevant Guidance Statement Paragraph	Example Letters in Appendix 1
1. Audit of a Group Financial Report When a controlling entity’s auditor wishes to review the audit working papers of the auditor of a controlled entity, in connection with the audit or review of the consolidated financial reports (including consolidated financial statements) of the controlling entity.^[3]	32-40	Letter A Letter C
2. Prospective Purchaser, Investor or Lender When a third party adviser to a prospective purchaser, investor or lender of the auditor’s client wishes to review the audit working papers to obtain information to assist them advise their client about a transaction.	42	Letter B1 Letter B2 Letter C
3. Predecessor/Successor Auditor When an entity’s newly appointed auditor (successor auditor) wants to consider the predecessor auditor’s audit working papers in connection with the next audit or review of the entity.	49-50	Letter E Letter C
4. Internal Audit Where the internal audit function is outsourced to an internal audit provider and the entity’s external auditor wants to review the entity’s internal audit working papers belonging to the internal audit provider to gain an understanding of the entity’s internal auditing activities relevant to the audit of the financial report.	43	Letter C Letter D
5. Joint Venture When an auditor of a joint venture participant may want to review the audit working papers of the auditor of the joint venture audit.	41	Letter A Letter C

Circumstances

Relevant Guidance Statement Paragraph

Example Letters in Appendix 1

1. Audit of a Group Financial Report

When a controlling entity’s auditor wishes to review the audit working papers of the auditor of a controlled entity, in connection with the audit or review of the consolidated financial reports (including consolidated financial statements) of the controlling entity.^[3]

32-40

Letter A

Letter C

2. Prospective Purchaser, Investor or Lender

When a third party adviser to a prospective purchaser, investor or lender of the auditor’s client wishes to review the audit working papers to obtain information to assist them advise their client about a transaction.

Letter B1

Letter B2

Letter C

3. Predecessor/Successor Auditor

When an entity’s newly appointed auditor (successor auditor) wants to consider the predecessor auditor’s audit working papers in connection with the next audit or review of the entity.

49-50

Letter E Letter C

4. Internal Audit

Where the internal audit function is outsourced to an internal audit provider and the entity’s external auditor wants to review the entity’s internal audit working papers belonging to the internal audit provider to gain an understanding of the entity’s internal auditing activities relevant to the audit of the financial report.

Letter C

Letter D

5. Joint Venture

When an auditor of a joint venture participant may want to review the audit working papers of the auditor of the joint venture audit.

Letter A

Letter C

In these circumstances, Section 323B of the Corporations Act 2001 requires the controlled entity’s auditor to give the controlling entity’s auditor any information, explanation or assistance required under Section 323A of the Act.