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 (Cth)
| Compiled Auditing Standard | ASRE 2415 (March 2013) |
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
This compilation was prepared on 26 March 2013 taking into account amendments made by ASA 2013‑1
Prepared by the Auditing and Assurance Standards Board
Obtaining a Copy of this Auditing Standard on Review Engagements
The most recently compiled versions of Auditing Standards on Review Engagements, original Standards and amending Standards (see Compilation Details) are available on the AUASB website: Details
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COPYRIGHT
© 2013 Auditing and Assurance Standards Board. The text, graphics and layout of this compiled Auditing Standard on Review Engagements are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Executive Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne Victoria 8007. Otherwise, no part of this compiled Auditing Standard on Review Engagements may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
ISSN 1833‑4393
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
Paragraphs
Application.................................................................................................................................. 1
Operative Date........................................................................................................................... 2
Introduction
Scope of this Auditing Standard on Review Engagements........................................................ 3-4
Objective..................................................................................................................................... 5
Definitions................................................................................................................................ 6-8
Requirements
Applicable Standards.............................................................................................................. 9-11
General Principles................................................................................................................. 12-13
Application and Other Explanatory Material
Applicable Standards.......................................................................................................... A1-A2
General Principles..................................................................................................................... A3
Conformity with International Standards on Review Engagements
Appendix 1: Example Auditor’s Review Report
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 26 March 2013 and was prepared on 26 March 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 another Auditing Standard on Review Engagements which is listed in the Table below.
Table of Standards
| Standard | Date made | Operative Date |
| ASRE 2415 [A] | 30 June 2010 | 30 June 2010 |
| ASA 2013‑1 [B] | 26 March 2013 | 1 July 2013 |
Table of Amendments
| Paragraph affected | How affected | By … [paragraph] |
| Title Page and Page Headers | Title changed | 7 |
| 1 | Application extended | 8 |
| 3 | Consequential extension of scope | 9 |
| 4 | Editorial change and reference deleted | 10 |
| 5 | Consequential editorial change | 11 |
| 7 | Consequential editorial change | 12 |
| Sub-heading (above 9) | Consequential editorial change | 13 |
| 9 | Consequential editorial changes and references deleted | 14 |
| Footnote 2 | Reference deleted | 15 |
| 10 | Consequential editorial change | 16 |
| 11 | Issue date added | 17 |
| Footnote 3 | Reference added | 18 |
| Footnote 5 | Consequential editorial change | 19 |
| Footnote 6 | Editorial correction | 20 |
| Sub-heading (above A1) | Consequential editorial change | 21 |
| A1 | Consequential editorial change and editorial correction | 22 |
| Footnote 7 | Reference deleted and editorial correction | 23 |
| Sub-heading (above A2) | Consequential editorial change | 24 |
| A2 | Consequential editorial change | 25 |
| Footnote 8 | Reference added | 26 |
| A3 | Consequential editorial change | 27 |
| Appendix 1 | New introductory paragraph | 28 |
| Appendix 1 | Consequential editorial changes through the example review report | 29-36 |
| Footnotes 11 and 12 | Renumbered | 37 |
[A] Federal Register of Legislative Instruments – registration number F2010L01935, 9 July 2010
[B] Federal Register of Legislative Instruments – registration number F2013L00587, 2 April 2013
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 by ASA 2013‑1 amendments up to 26 March 2013) is set out in paragraphs Aus 0.1 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, as amended, 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. This Auditing Standard on Review Engagements is to be read also in conjunction with ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Dated: 26 March 2013 M H Kelsall
Chairman - AUASB
AUDITING STANDARD ON REVIEW ENGAGEMENTS ASRE 2415
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 another Auditing Standard on Review Engagements made by the AUASB up to and including 26 March 2013 (see 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
Application
This Auditing Standard on Review Engagements applies to a review of a financial report for a financial year for:
(a)a company limited by guarantee in accordance with the Corporations Act 2001 (the Act); or
(b)an entity required to report under the Australian Charities and Not-for-Profit Commission Act 2012 (Cth) (the ACNC Act); or
(c)an entity required to report under other applicable legislation or regulation.
Operative Date
This Auditing Standard on Review Engagements is operative for financial reporting periods commencing on or after 30 June 2010. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]
Introduction
Scope of this Auditing Standard on Review Engagements
This Auditing Standard on Review Engagements deals with the responsibilities of the auditor to review the financial report of:
(a)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]
[1] See Appendix 1 for an illustrative example review report.
(b)An entity that has elected, under the ACNC Act, to have its financial report reviewed instead of audited.
(c)An entity required to report under other applicable legislation or regulation.
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.
Objective
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
For the purposes of this Auditing Standard on Review Engagements, the following terms have the meanings attributed below:
(a)A company limited by guarantee means a company limited by guarantee whose obligations are set out in section 285A of the Act.
(b)A registered company auditor includes an individual who meets the requirements of section 324BE of the Act.
(c)Revised Legislation means Corporations Amendment (Corporate Reporting Reform) Act 2010.
The term “auditor” as used in this Auditing Standard on Review Engagements, refers to a registered company auditor or an individual:
(a)taken to be a registered company auditor under section 324BE of the Act; and/or
(b)permitted under the ACNC Act to conduct reviews of a financial report; and/or
(c)permitted to conduct reviews of a financial report under other applicable legislation or regulation.
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
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)
[2] 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.
Company Not Previously Audited by the Auditor
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)
[3] 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).
For purposes of this Auditing Standard, requirements under ASRE 2400 (issued August 2008) are identified in bold‑type in that standard.[4]
[4] See ASA 100 Preamble to AUASB Standards, paragraph 9(a).
General Principles
The auditor shall comply with relevant ethical requirements relating to the review of the financial report.[5] (Ref: Para. A3)
[5] See ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements, as amended.
The auditor shall implement quality control procedures that are applicable to the individual engagement.[6]
[6] 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.
[7] 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.
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.
[8] 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).
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.
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).
Appendix 1
(Ref: Para. 3)
EXAMPLE AUDITOR’S REVIEW REPORT
The following example auditor’s review report is to be used as a guide only and will need to be adapted according to the review engagement requirements and circumstances. It is based on the example review reports contained in the Appendices of ASRE 2400 and ASRE 2410.
The example auditor’s review report is to be adapted as necessary for reviews under the ACNC Act or other applicable legislation or regulation.
Example 1: Financial report of a company limited by guarantee prepared under the Corporations Act 2001. The financial reporting framework is designed to achieve fair presentation.
EXAMPLE OF AN UNMODIFIED REVIEW REPORT
INDEPENDENT AUDITOR’S REVIEW REPORT
To the members of [name of company/entity]
Report on the Financial Report
We [I][9] have reviewed the accompanying financial report of [name of company/entity], which comprises the statement of financial position as at 30 June 20XX, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.[10]
[9] When an individual is taken to be a registered company auditor under section 324BE of the Corporations Act 2001, the auditor’s report is to be written in singular form.
[10] When the auditor is aware that the financial report will be included in a document that contains other information, the auditor may consider, if the form of presentation allows, identifying the page numbers on which the reviewed financial report is presented.
Directors’/Board of Management’s[11] Responsibility for the Financial Report
[11] Or other appropriate term.
The directors/board of management of the company/entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001/ACNC Act[12] and for such internal control as the directors/board of management determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.
[12] Or other applicable legislation or regulation.
Auditor’s Responsibility
Our [My] responsibility is to express a conclusion on the financial report based on our [my] review. We [I] conducted our [my] review in accordance with 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, in order to state whether, on the basis of the procedures described, we [I] have become aware of any matter that makes us [me] believe that the financial report is not in accordance with the Corporations Act 2001/ACNC Act[13] including: giving a true and fair view of the company’s/entity’s financial position as at 30 June 20XX and its performance for the year ended on that date; and complying with the Australian Accounting Standards [and CorporationsRegulations2001]. ASRE 2415 requires that we [I] comply with the ethical requirements relevant to the review of the financial report.
[13] Or other applicable legislation or regulation.
A review of a financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us [me] to obtain assurance that we [I] would become aware of all significant matters that might be identified in an audit. Accordingly, we [I] do not express an audit opinion.
[Independence
In conducting our [my] review, we [I] have complied with the independence requirements of the Corporations Act 2001. We [I] confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of [name of company], would be in the same terms if given to the directors as at the time of this auditor’s report.][14]
[14] Or, alternatively, include statements (a) to the effect that circumstances have changed since the declaration was given to the relevant directors; and (b) setting out how the declaration would differ if it had been given to the relevant directors at the time the auditor’s report was made. A Statement of Independence is required under the Corporations Act 2001.
Conclusion[15]
[15] Form of conclusion will depend on applicable legislation or regulation.
Based on our [my] review, which is not an audit, we [I] have not become aware of any matter that makes us [me] believe that the financial report of [name of company] is not in accordance with the Corporations Act 2001[16] including:
[16] Or ACNC Act or other applicable legislation or regulation.
(a)giving a true and fair view of the company’s financial position as at 30 June 20XX and of its performance for the year ended on that date; and
(b)complying with Australian Accounting Standards [and CorporationsRegulations2001].
Report on Other Legal and Regulatory Requirements
[Form and content of this section of the review report will vary depending on the nature of the auditor’s other reporting responsibilities].
[Auditor’s signature][17]
[17] The auditor’s review report is required to be signed in one or more of the following ways: the name of the audit firm, the name of the audit company or the personal name of the individual auditor as appropriate.
[Date of the auditor’s review report][18]
[18] The date of the auditor’s report is the date the auditor signs the report.
[Auditor’s address]
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