ASRE 2410 - Review of an Interim Financial Report Performed by the Independent Auditor of the Entity - April 2006
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CONTENTS
PREFACE
AUTHORITY STATEMENT
Paragraphs
Application.................................. 1
Operative Date................................ 2
Introduction.................................. 3-7
General Principles of a Review of an Interim Financial Report. 8-13
Objective of an Engagement to Review an Interim Financial Report 14-16
Agreeing the Terms of the Engagement................ 17-18
Procedures for a Review of an Interim Financial Report
Understanding the Entity and its Environment, Including its Internal Control 19-25
Materiality.................................. 26-31
Enquiries, Analytical and Other Review Procedures....... 32-45
Comparatives – First Interim Report................. 46-50
Evaluation of Misstatements....................... 51-54
Management Representations...................... 55-57
Auditor’s Responsibility for Accompanying Information.... 58-61
Communication............................... 62-69
Reporting the Nature, Extent and Results of the Review of an Interim Financial Report 70-71
Departure from the Applicable Financial Reporting Framework 72-75
Limitation on Scope............................ 76-77
Limitation on Scope Imposed by Management........... 78-83
Other Limitations on Scope not Imposed by Management.... 84-86
Going Concern and Significant Uncertainties............ 87-93
Other Considerations............................ 94-96
Documentation................................ 97-98
Conformity with International Standards on Review Engagements 99
Appendix 1: Example of an Engagement Letter for a Review of an Interim Financial Report
Example of a Management Representation Letter
Appendix 2: Analytical Procedures the Auditor May Consider When Performing a Review of an Interim Financial Report
Illustrative Detailed Procedures that may be Performed in an Engagement to Review an Interim Financial Report
Appendix 3: An Auditor’s Review Report under the Corporations Act 2001
Example of an Unmodified Auditor’s Review Report on a Half-Year Financial Report – Single Disclosing Entity
Appendix 4: Example of an Unmodified Auditor’s Review Report on an Interim Financial Report
Interim Financial Report Prepared in Accordance with a Financial Reporting Framework Designed to Achieve Fair Presentation