Conformity with International Standards Conformity with International Standards on Review Engagements

Conformity with International Standards on Review Engagements

99 ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity is directed towards a review of interim financial information by an entity’s auditor. For purposes of ISRE 2410, financial information comprises either a complete or condensed set of financial statements for a period that is shorter than the entity’s financial year. ISRE 2410 is directed towards the review of interim financial information. Further to amendments effected by the International Auditing and Assurance Standards Board in December 2007, it is to be applied, adapted as necessary in the circumstances, when an auditor undertakes an engagement to review historical financial information other than interim financial information of an audit client.

Following consultation with constituents in Australia in accordance with normal exposure draft processes, the AUASB has decided that:

• due to the nature of reviews of other historical financial information, a separate Standard is more appropriate than ASRE 2410 being adapted by the auditor for this purpose; and
• ASRE 2405 Review of Historical Financial Information Other than a Financial Report, as developed by the AUASB, will more comprehensively deal with reviews of other historical financial information.

Accordingly, ASRE 2410 is intended to conform, with the exceptions listed below, to ISRE 2410 to the extent that ISRE 2410 deals with the review of financial statements by the auditor of the entity.

Except as noted below, this ASRE conforms, to the extent described above, with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. The main differences between this ASRE and ISRE 2410 are:

1. This Auditing Standard contains the following mandatory requirements that are not contained in ISRE 2410:

• This Auditing Standard applies to:

(a) A review, by the independent auditor of the entity, of a financial report for a half-year in accordance with Part 2M.3 of the Corporations Act 2001; and

(b) A review, by the independent auditor of the entity, of an interim or other financial report, comprising historical financial information, for any other purpose (paragraph 1).

• Where in rare and exceptional circumstances, factors outside the auditor’s control prevent the auditor from complying with a relevant mandatory requirement, the auditor shall:

♦ if possible, perform appropriate alternative procedures; and