Auditor’s Responsibilities and the Financial Reporting Framework

As part of its recent outreach and research activities the Auditing and Assurance Standards Board (AUASB) Technical Group have observed a number of instances where:

• Preparers of financial reports have not adequately referred to or described the financial reporting framework (FRF) (including whether a general purpose or a special purpose framework was applied); and
• Auditor’s reports of financial reports prepared using a special purpose framework (SPF) did not include an Emphasis of Matter paragraph.

The purpose of this AUASB Bulletin is to remind auditors of their responsibilities in relation to considering the FRF when auditing a financial report.  In addition this Bulletin alerts auditors to additional disclosure requirements being proposed for financial reports prepared using a SPF. 

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