CommunicationCommunication

Communication

1. When, as a result of performing a review of a financial report, a matter comes to the auditor’s attention that causes the auditor to believe that it is necessary to make a material adjustment to the financial report for it to be prepared, in all material respects, in accordance with the applicable financial reporting framework, the auditor shall communicate this matter as soon as practicable to the appropriate level of management.
2. When, in the auditor’s judgement, management does not respond appropriately within a reasonable period of time, the auditor shall inform those charged with governance. (Ref: Para. A38)
3. When, in the auditor’s judgement, those charged with governance do not respond appropriately within a reasonable period of time, the auditor shall consider:
   1. whether to modify the review report; or
   2. the possibility of withdrawing from the engagement; and
   3. the possibility of resigning from the appointment to audit the annual financial report. (Ref: Para. Aus A36.1 and A58)
4. When, as a result of performing the review of a financial report, a matter comes to the auditor’s attention that causes the auditor to believe in the existence of fraud or non‑compliance by the entity with laws and regulations, the auditor shall communicate the matter as soon as practicable to those charged with governance and shall consider the implications for the review. (Ref: Para. A39)
5. The auditor shall communicate relevant matters of governance interest arising from the review of the financial report to those charged with governance. (Ref: Para. A40 and A59)