ASRE 2410 - Review of an Interim Financial Report Performed by the Independent Auditor of the Entity - April 2006
Departure from the Applicable Financial Departure from the Applicable Financial Reporting Framework
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Departure from the Applicable Financial Reporting Framework
72 The auditor shall express a qualified or adverse conclusion when a matter has come to the auditor’s attention that causes the auditor to believe that a material adjustment should be made to the interim financial report for it to be prepared, in all material respects, in accordance with the applicable financial reporting framework. The auditor shall include a basis for modification paragraph in the report, that describes the nature of the departure and, if practicable, state the effects on the interim financial report. If the effects or possible effects are incapable of being measured reliably, a statement to that effect and the reasons therefore shall be included in the basis for modification paragraph. The conclusion paragraph shall be headed ‘Qualified Conclusion’ or “Adverse Conclusion’ whichever is relevant.
73 If matters have come to the auditor’s attention that cause the auditor to believe that the interim financial report is or may be materially affected by a departure from the applicable financial reporting framework, and those charged with governance do not correct the interim financial report, under paragraph 72 of this Auditing Standard, the auditor needs to modify the review report. If the information that the auditor believes is necessary for adequate disclosure is not included in the interim financial report, under paragraph 72 of this Auditing Standard, the auditor needs to modify the review report and, if practicable, include the necessary information in the review report. Illustrative review reports with a qualified conclusion are set out in Appendix 4 to this Auditing Standard.
74 When the effect of the departure is so material and pervasive to the interim financial report that the auditor concludes a qualified conclusion is not adequate to disclose the misleading or incomplete nature of the interim financial report, the auditor shall express an adverse conclusion.
75 An illustrative review report with an adverse conclusion is set out in Appendix 4 to this Auditing Standard.