Basis for Granting Access

Owners of an entity seeking to sell their investment, or entities seeking further equity or loan funding from third parties, often believe their objectives might be facilitated by requesting the entity’s auditor to make available their audit working papers to third parties. The auditor may consider the following matters before deciding whether to grant access to working papers for this purpose:

a. whether to obtain legal advice; and

b. ensuring the auditor’s client and third parties, to whom access is to be given, confirm and acknowledge, in favour of the auditor:

i. that no representation is made about the accuracy or completeness of the audit working papers or any additional information provided in connection with that access, or of any individual amounts, accounts, balances, transactions or disclosures, or the accuracy or completeness of other information included in the audit working papers or any additional information;

ii. that the auditor is not responsible to the audit client and/or other third parties for any loss suffered in connection with access, to or use of, the audit working papers; and

iii. that the auditor will receive an indemnity against any loss, action, liability, claim, suit, demand, claim for costs or expenses or any other proceeding that the auditor may suffer arising out of, or in connection with, granting access to the audit working papers and the additional information given in connection with that access.

Circumstances in Which a Practitioner can Provide Access to their Audit Working Papers to Prospective Purchasers, Investors or Lenders

Ordinarily, the statutory auditor will not allow prospective purchasers, investors or lenders access to its working papers until the assurance engagement is completed.

When considering whether the assurance engagement is complete, the auditor may consider matters such as:

a. whether the auditor’s report on the financial report or sustainability report or information has been signed; and

b. whether the assembly of the final audit file been completed.