Scope of an Audit of a Financial ReportScope of an Audit of a Financial Report

Scope of an Audit of a Financial Report

13 The term “scope of an audit” refers to the audit procedures that, in the auditor’s judgement and based on the Auditing Standards, are deemed appropriate in the circumstances to achieve the objective of the audit.

14 In determining the audit procedures to be performed in conducting an audit in accordance with Auditing Standards, the auditor shall comply with each of the Auditing Standards relevant to the audit.

15 Where in rare and exceptional circumstances, factors outside the auditor's control prevent the auditor from complying with an essential procedure contained within a relevant mandatory requirement, the auditor shall:

(a) if possible, perform appropriate alternative audit procedures; and

(b) in accordance with ASA 230 Audit Documentation, document in the working papers:

(i) the circumstances surrounding the inability to comply;

(ii) the reasons for the inability to comply; and

(iii) justification of how alternative audit procedures achieve the objectives of the mandatory requirement.

When the auditor is unable to perform appropriate alternative audit procedures, the auditor shall consider the implications for the auditor’s report.

16 In performing an audit, an auditor may be required to comply with other professional, legal or regulatory requirements in addition to the Auditing Standards. In the event that these other requirements differ from those in the Auditing Standards, an audit conducted in accordance with other professional, legal or regulatory requirements does not, of itself, represent compliance with Auditing Standards.

17 When the auditor conducts the audit in accordance with Auditing Standards and International Standards on Auditing (“ISAs”), in accordance with ASA 700 The Auditor’s Report on a General Purpose Financial Report, the auditor’s report is required to refer to the audit having been conducted in accordance with the Auditing Standards and ISAs only when the auditor has complied fully with all of the Auditing Standards and ISAs relevant to the audit.

18 The auditor shall not represent compliance with Auditing Standards unless the auditor has complied fully with all of the Auditing Standards relevant to the audit.

19 Where in rare and exceptional circumstances, factors outside the auditor’s control prevent the auditor from complying with an essential procedure contained within a relevant mandatory requirement, compliance with the Auditing Standards can still be represented provided the auditor has complied with the requirements of paragraph 15 of this Auditing Standard.