Other ConsiderationsOther Considerations

Other Considerations

94 The terms of the engagement include agreement by those charged with governance that where any document containing an interim financial report indicates that the report has been reviewed by the entity’s auditor, the review report will be also included in the document. If those charged with governance have not included the review report in the document, ordinarily the auditor considers seeking legal advice to assist in determining the appropriate course of action in the circumstances.

95 If the auditor has issued a modified review report and those charged with governance issue the interim financial report without including the modified review report in the document containing the interim financial report, ordinarily the auditor considers seeking legal advice to assist in determining the appropriate course of action in the circumstances, and the possibility of resigning from the appointment to audit the annual financial report.

96 An interim financial report consisting of a summarised financial report does not include all of the information that would be included in a general purpose financial report, but may rather present an explanation of the events and changes that are significant to an understanding of the changes in the financial position and performance of the entity since the annual reporting date. This is because it is presumed that the users of the interim financial report will have access to the latest audited financial report, such as is the case with listed entities. In other circumstances, ordinarily the auditor discusses with management the need for the interim financial report to include a statement that it is to be read in conjunction with the latest audited financial report. In the absence of such a statement, ordinarily the auditor considers whether, without a reference to the latest audited financial report, the interim financial report is misleading in the circumstances and the implications for the review report.