Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (July 2020)

What this legislation does:

This is ASRE 2410, an Australian auditing standard that sets out the rules for reviewing financial reports — specifically when the review is done by the same auditor who audits the company's annual financial statements.

Key points:

• Who it applies to: Companies that must lodge half-yearly financial reports under the Corporations Act 2001, plus any other entity wanting a review of interim or other financial statements
• What a "review" means: A lighter-touch examination than a full audit. The auditor makes enquiries, applies analytical procedures, and checks whether anything obvious suggests the financial report is materially misstated — but does not gather all the evidence needed for an audit opinion
• The auditor's goal: To express a conclusion about whether anything has come to their attention that causes them to believe the financial report is not prepared, in all material respects, in accordance with the applicable accounting framework

Why it matters:

• Provides limited assurance (not reasonable assurance like an audit) — essentially a "health check" rather than a full examination
• Cheaper and faster than an audit, appropriate for interim periods