Please enable JavaScript.

Coggle requires JavaScript to display documents.

• evaluate whether a fair presentation or compliance framework is being…

- - - - a financial reporting framework that requires compliance with the requirements of the framework and:
        (i) acknowledges explicitly or implicitly that it may be necessary for management to provide disclosures beyond those specifically required by the framework; or
        (ii) acknowledges explicitly that it may be necessary for management to depart from a requirement of the framework to achieve fair presentation of the financial statements (rare)
        The financial statements give a true and fair view of … in accordance with [the applicable financial reporting framework].
      - expressing an unmodified opinion
        
        When expressing an unmodified opinion on financial statements prepared in accordance with a fair presentation framework, the auditor’s opinion usually uses one of these phrases, which are regarded as being equivalent:
        
        (a) The financial statements are presented fairly, in all material respects … in accordance with [the applicable financial reporting framework]
        (b) The financial statements give a true and fair view of … in accordance with [the applicable financial reporting framework].
    - - requires compliance with the requirements of the framework, but does not require the auditor to ‘step back’ to consider fair presentation.
        The financial statements are prepared, in all material respects, in accordance with [the applicable financial reporting framework].
      - expressing an unmodified opinion
        
        The financial statements are prepared, in all material respects, in accordance with [the applicable financial reporting framework]’.
- - - - How do auditor's express an opinion about a fair presentation framework/compliance framework?
        
        TABLE!!!
      - ISA 700 acknowledges that the financial reporting framework may be a fair presentation framework or a compliance framework.
      - PDL SLIDE!!!
    - - Corporations Act and true and fair view
        
        Section 297 of the Corporations Act requires the auditor to give an opinion as to whether the accounts are drawn up so as to give a true and fair view.
        
        this section does not affect the obligation under s. 296 for a financial report to comply with Australian Accounting Standards without exception.
        
        If, however, directors do not believe that the financial report resulting from following associated standards are true and fair, they must add such information in the notes to the financial report as is necessary to give a true and fair view (s. 297).
        
        virtually no current examples of listed companies adding additional notes in order to provide a true and fair view
        
        These observations suggest that both management and auditors believe that preparation of accounts in accordance with the current Australian Accounting Standards provides a true and fair view.
        
        If the auditors are of the view that the further information necessary to give a true and fair view is not disclosed, this would constitute a disagreement with management and, if material, lead to a modified opinion.