Contextual FrameworkContextual Framework

Appendix 3

(Ref: Para. A41)

AN AUDITOR’S REVIEW REPORT UNDER THE

CORPORATIONS ACT 2001

Financial Report for a Half‑year

Introduction

1. This Appendix has been prepared to assist an auditor, engaged to undertake a review engagement, by providing an example of an auditor’s review report on a review of a financial report for a half‑year prepared in accordance with Part 2M.3 of the Corporations Act 2001 (“The Act”). The example reflects both requirements of this Auditing Standard and the Act, but is not intended to require standard wording for the circumstances of particular modifications.
2. This Appendix contains limited extracts from the Act and the Australian Accounting Standards in order to provide a context for the example report included in this Appendix. These selected extracts are included in this Appendix only for the purpose stated and accordingly are not intended to be an exhaustive list of an auditor’s obligations and requirements which are found elsewhere in this Auditing Standard, the Act, the Australian Accounting Standards and other relevant mandates.
3. This Appendix:

 Includes selected extracts from the Act and Australian Accounting Standards, and references to other relevant information, to provide a contextual framework; and

 Provides an example of a review report.

Contextual Framework

Corporations Act 2001

The following selected extracts from the Act are included in this Appendix only to point to some of the important requirements of the Act that affect auditors engaged to undertake a review engagement in accordance with the Act.

1. Section 302 states:

“A disclosing entity[18] must:

1. prepare a financial report and directors’ report for each half‑year; and
2. have the financial report audited or reviewed in accordance with Division 3 and obtain an auditor’s report; and
3. lodge the financial report, the director’s report and the auditor’s report on the financial report with ASIC;

unless the entity is not a disclosing entity when lodgement is due”.