Auditing Standard on Review Engagements ASRE ASRE Review of Historical Financial Information Other than a Financial Report, developed by. conducted our review in accordance with Standard on Review Engagements ASRE Review of Historical Financial Information Other than. have conducted a review in accordance with Standard on Review Engagements ASRE Review of. Historical Financial Information Other.

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If a significant uncertainty other than a going concern problem is not adequately disclosed in the financial report, the auditor shall express a qualified or adverse conclusion, as appropriate. Enquire about the reason for unusually large accounts, credit balances on accounts or any other unusual balances and enquire about the collectibility awre receivables. Enquire about the consistency with which the depreciation method and rates have been applied and compare depreciation provisions with prior years.

Standards on Review Engagements

Ordinarily, a limitation on scope prevents the auditor from completing the review. The auditor shall include a basis for modification paragraph in the report, that describes the nature of the departure and, if practicable, states the effects on the financial report.

The communication ordinarily covers the following matters:. For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details. Enquire whether any actual or contingent liabilities exist which have not been recognised in the accounts. Basis for Qualified Conclusion As this is the first year that [name of entity] is required to prepare a [period] financial report and have it reviewed, the balance sheet, income statement, statement of changes in equity, cash flow statement, [statement or description of accounting policies [61] ] and other selected explanatory notes for the preceding corresponding [period] have not been reviewed or audited.

In conducting our review, we have complied with the independence requirements of the Australian professional accounting bodies [36] ]. Enquire whether the policies and procedures related to revenue recognition, including accrued income, have been consistently applied and whether there are any new or complex changes, including any changes in major contracts with customers or suppliers.


These Auditing Standards establish requirements and provide application and other explanatory material regarding a review of a financial report for a financial year of certain companies limited by guarantee.

Obtain an aged analysis of the trade receivables. The auditor shall comply with relevant ethical requirements relating to the audit of the annual financial report of the entity. Consider whether there are any indicators of impairment and whether the property, plant and equipment have suffered a material, permanent impairment in value.

Enquire whether there are any unusual trends and developments affecting accounting estimates. In situations where there are environmental matters that may, but probably will not, require an outflow of resources, this may be reflected in an addition to Item 9 abovefor example:.

Standards on Review Engagements

Had we been able to complete our review of accounts receivable, matters might have come to our attention indicating that adjustments might be necessary to the [period] financial report. Enquire whether any hedges have been entered into for speculative purposes.

The auditor shall obtain an understanding of the entity and its environment, including its 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:.

Discuss recoverability thereof with management. However, we shall inform you of any material matters that come to our attention. It is not intended that all the procedures suggested apply to every review engagement.

An interim financial report shall include, at a minimum, the following components: Such a review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures and does not, ordinarily, require corroboration of the information obtained. Issued by the Auditing and Assurance Standards Board. We are responsible for an adequate internal control structure to prevent and detect fraud and error and to facilitate the preparation of a reliable financial report, and adequate financial records have been maintained.

We have reviewed the accompanying [period] financial report of [name of entity], which comprises the balance sheet as at [date], and the income statement, statement of changes in equity and cash flow statement for the [period] ended on that date, are [statement or description of accounting policies, [32] wsre other selected explanatory notes, and [the declaration of those charged with governance [33] ].


Enquire about the method used for identifying slow moving and obsolete inventory and whether such inventory has been accounted for at net realisable value. Enquire about any new employee share plans or changes aste existing plans, and where employee share plans are material, assess whether the accounting methodology has been consistently applied. Ordinarily, the auditor considers, based on procedures performed, whether it is necessary to corroborate the feasibility of the plans of those charged with governance and whether asrre outcome of these plans will improve the situation.

Enquire whether there are any loans where there has been a change to the terms and conditions or management has not complied with the provisions of the loan agreement, including any debt covenants. Going Concern and Significant Uncertainties The [title of those charged with governance] of the [type of entity] are responsible 22405 the preparation and fair presentation of the [period] financial report in accordance with the [applicable financial reporting framework] and for such internal control as the directors [those charged with governance] determine is necessary to enable the preparation and fair presentation of the [period] financial report that is free from material misstatement, whether due to fraud or error.

If the information that the auditor believes is necessary for adequate disclosure is not included in the financial report, the auditor needs to modify the review report and, if practicable, include the necessary information in the review report.

Obtain a schedule of trade payables and determine whether the total agrees with the trial balance. For the purposes of this Auditing Standard, the following terms have the meanings attributed below:.