Auditing Standard on Review Engagements ASRE ASRE Review of Historical Financial Information Other than a Financial Report, developed by. conducted our review in accordance with Standard on Review Engagements ASRE Review of Historical Financial Information Other than. have conducted a review in accordance with Standard on Review Engagements ASRE Review of. Historical Financial Information Other.
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Issued by the Auditing and Assurance Standards Board. The auditor shall obtain an understanding of the entity and its environment, including its internal control, as it relates to the preparation of both the annual and interim or other financial reports, sufficient awre plan and conduct the engagement so as to be able to:. We confirm that the financial report is prepared and presented fairly in accordance with [applicable financial reporting framework] and is free of material misstatements, including omissions].
Obtain from management the latest financial report and compare it with the financial report being reviewed or with those for comparable periods from the preceding year. Ensure significant review differences have been summarised and their effect evaluated.
Enquire about major fluctuations and differences. Further, our asrs cannot be relied upon to disclose whether fraud or errors, or illegal acts exist. A review of a [period] financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
We have reviewed the accompanying [period] financial report of [name of entity], which comprises the balance sheet as at [date], and the income statement, statement of changes in equity and cash flow statement for the [period] ended on that date, a [statement or description of accounting policies  ], other selected explanatory notes, and [the declaration of those charged with 24005  ].
When information is presented electronically asree a web site, the security and controls over information on the web site should be addressed by [the entity] to maintain the integrity of the data presented.
Standards on Review Engagements
The auditor needs to use professional judgement and consider qualitative and quantitative factors in determining materiality. If a significant uncertainty other than a going concern problem is not adequately disclosed in the financial report, the auditor shall express a qualified or adverse conclusion, as appropriate. For the purposes of this Auditing Standard, the following terms have the meanings attributed below:. Obtain an aged analysis of the trade receivables.
The 240 of the applicable ase reporting framework determine the form and content of the asrs report. Obtain a schedule of other liabilities and determine whether the total agrees with the trial balance. Enquire about approvals for such other liabilities, terms of payment, compliance with terms, collateral and classification.
Consider and update with management the relationship between related items in the revenue account and assess the reasonableness thereof in the context of similar relationships for prior periods and other information available to the auditor.
The auditor shall consider materiality, using professional judgement, when:. Our responsibility is to express a conclusion on the [period] financial report based on our review. asge
Consider whether there have been any indicators of impairment for intangibles and enquire whether management have appropriately considered discount rates, growth rates, etc. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.
A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. Yours faithfully, signed ……………………….
Awre such cases, ordinarily an auditor encourages clear disclosure in the financial report, that the auditor has been unable to review the comparatives.
A summary of such items is included in or attached to the written representations. Certain entities may be required to include other information in the financial report, for example, performance indicators for government entities.
The terms of engagement to review a financial report can also be combined with the terms of engagement to audit the annual financial report. Discuss recoverability thereof with management. The auditor who is engaged to perform a review of a financial report shall perform the review in accordance with this Auditing Standard. Click here to save this PDF file. Enquire of persons responsible for financial reporting about the following: Scope of this Auditing Standard on Review Engagements Consider the going concern assumption.
Enquire whether there are adequate policies and procedures to determine the fair value of financial assets and financial liabilities.
Property Plant and Equipment and Depreciation Ordinarily, the auditor considers matters such as the nature, cause and amount of the misstatements, whether the misstatements originated in the preceding year or current year, and the potential effect of 24005 misstatements on future interim or annual periods.
Law or regulation governing review engagements in the public sector ordinarily mandates the appointment of the auditor.
Standards on Review Engagements
Procedures for a Review of a Financial Report In the public sector, the auditor may be subject to statutory or other regulatory requirements to report such a matter to regulatory or other public authorities.
Obtain or update knowledge and understanding of the business, the key internal and external changes including laws and regulationsand their effect on the scope of the review, materiality azre risk assessment. The following letter is not intended to be a standard letter.
Enquire whether there are any restrictions on retained earnings or other equity accounts. Compare turnover with prior periods.
If the material uncertainty still exists and adequate disclosure is made in the financial report, the auditor needs to modify the review report on the current financial report by adding a paragraph to highlight the continued material uncertainty. Consider whether there are any indicators of impairment and whether any investment property was subject to recent valuations.
Enquire about any new employee share plans or changes to existing plans, and where employee share plans are material, assess whether the accounting methodology has been consistently applied. Enquire whether loans payable are secured. When comparative information is included for the first time in a financial report, an auditor shall perform similar procedures on the comparative information as applied to the current period financial report.
The auditor ordinarily performs the following procedures:. Enquire about events after the balance sheet reporting date that would have a material effect on the financial report under review and, in particular, enquire whether:. If, after accepting the engagement, management imposes a limitation on the scope of the review, the auditor shall request management to remove the limitation.
The paragraph would preferably be included after the conclusion paragraph and ordinarily refers to the fact that the conclusion is not qualified in this respect. If an amendment is necessary to correct a material misstatement of fact and management refuses to make the amendment, ordinarily the auditor considers taking further action as appropriate, such as notifying those charged with governance and, if necessary, obtaining legal advice.