Procedures for a Review of a Financial RProcedures for a Review of a Financial Report

###### Procedures for a Review of a Financial Report Understanding the Entity and its Environment, Including its Internal Control 1. The auditor shall obtain an understanding of the entity and its environment, the applicable financial reporting framework, and the entity’s system of internal control, as it relates to the preparation of both the annual and interim or other financial reports, sufficient to plan and conduct the engagement so as to be able to: 1. identify the types of potential material misstatements and consider the likelihood of their occurrence; and 2. select the enquiries, analytical and other review procedures that will provide the auditor with a basis for reporting whether anything has come to the auditor’s attention that causes the auditor to believe that the financial report is not prepared, in all material respects, in accordance with the applicable financial reporting framework. (Ref: Para. A9‑A12) 2. In order to plan and conduct a review of a financial report, a recently appointed auditor, who has not yet performed an audit of the annual financial report in accordance with Australian Auditing Standards, shall obtain an understanding of the entity and its environment, the applicable financial reporting framework, and the entity’s system of internal control, as it relates to the preparation of both the annual and interim or other financial reports. (Ref: Para. A13)