Under the Act, the auditor’s report would need to be signed before the director’s report as the Act requires that the declaration and auditor’s report be given to directors at the same time. However, the auditing standards require auditors to comment in the auditor’s report on any material inconsistencies between the director’s report and the financial report and consider the impact of any misstatements of fact.  
 
This problem is now addressed by ASIC in Class Order 05/83 “Timing of Auditor’s Independence Declarations”. This allows an auditor’s report to be signed after the auditor’s independence declaration is given to directors, and accordingly this class order brings the requirements of the Act and auditing standards into line. 
 
A copy of the Class Order can be downloaded at http://www.asic.gov.au