Agreeing the Terms of the Engagement (ReAgreeing the Terms of the Engagement (Ref: Para. A8, A58 and A60)

Agreeing the Terms of the Engagement (Ref: Para. A8, A58 and A60)

Preconditions for a Review

1. The auditor shall, prior to agreeing the terms of the engagement, determine whether the financial reporting framework is acceptable and obtain agreement from management and, where appropriate, those charged with governance, that it acknowledges and understands its responsibility:

   1. for the preparation of the financial report including, where relevant their fair presentation;

   2. for such internal controls as management and, where appropriate, those charged with governance, deems necessary to enable the preparation of the financial report that is free from material misstatement; and

   3. to provide the auditor with:

      1. access to information relevant to the preparation of the financial report;
      2. additional information that the auditor may request for the purposes of the review engagement; and
      3. unrestricted access to persons from whom the auditor determines it necessary to obtain evidence.

Agreement on Review Engagement Terms

1. The auditor shall agree the terms of the engagement with the entity, which shall be recorded in writing by the auditor and forwarded to the entity. When the review engagement is undertaken pursuant to legislation, the minimum applicable terms are those contained in the legislation.