The auditor’s evaluation about whether the financial report achieves fair presentation, both in respect of presentation and disclosure, is a matter of professional judgement.  This evaluation takes into account such matters as the facts and circumstances …

The auditor’s understanding of the entity and its environment, and the applicable financial reporting framework, also informs how the auditor plans and performs further audit procedures, for example, when: Developing expectations for use when performing …

Evaluating whether the financial report achieves fair presentation may include, for example, discussions with management and those charged with governance about their views on why a particular presentation was chosen, as well as alternatives that may have …

As explained in ASA 200, the preparation of the financial report by management and, where appropriate, those charged with governance requires the inclusion of an adequate description of the applicable financial reporting framework in the financial report. …

A description that the financial report is prepared in accordance with a particular applicable financial reporting framework is appropriate only if the financial report complies with all the requirements of that framework that are effective during the …

A description of the applicable financial reporting framework that contains imprecise qualifying or limiting language (e.g., “the financial report is in substantial compliance with Australian Accounting Standards”) is not an adequate description of that …

Reference to More than One Financial Reporting Framework …

In some cases, the financial report may represent that it is prepared in accordance with two financial reporting frameworks (e.g., the Australian Accounting Standards and IFRSs).  This may be because management is required, or has chosen, to prepare the …

A financial report that is prepared in accordance with one financial reporting framework and that contains a note or supplementary statement reconciling the results to those that would be shown under another framework is not prepared in accordance with …

The financial report may, however, be prepared in accordance with one applicable financial reporting framework and, in addition, describe in the notes to the financial report the extent to which the financial report complies with another framework (e.g., …