Auditor remuneration for audit and non-audit services must be disclosed separately in the financial statements under AASB 1054 Australian Additional Services. Paragraph 10 of AASB 1054 requires the disclosures of fees to each auditor or reviewer, including any network firm, separately for the audit or review of the financial statements and for all other services performed during the reporting period.

AASB 1054.11 requires a description of the nature of the other services provided. The disclosure should include descriptions and amounts for each type of other service provided by each auditor or reviewer. For example, if you prepared the tax return, performed a due diligence engagement and reviewed a regulatory return, the description and fees for each service must be shown separately.

ASIC has exempted from audit (under Class Order 98/1417) large proprietary companies that have unanimous agreement from directors and shareholders not to have an audit, that have not previously had an audit and meet strict financial and other criteria. Resolutions to this effect must be made annually and ASIC notification at the start of each financial year. Companies that do not strictly meet the criteria for relief under the Class Order may apply for individual relief under ASIC Policy Statement 115.

Copies of the class order and policy statement can be found on the ASIC website.

[as reported in ANT25/2011]

There is no “off the peg” example that fits your circumstances exactly, but guidance is still available. A small non reporting entity that does not have to lodge accounts may elect to prepare special purpose financial statements, in which case the relevant reporting standard is ASA 800 Special Considerations – Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks. Because the financial report is prepared under a fair presentation framework but not under the Corporations Act, the examples countered in Appendix I should be of assistance to you. In particular, Illustration 3 – Special Purpose Financial Report – Regulatory Authority Requirements is helpful, appropriately edited. Illustration 4 is inappropriate because your client is not compelled to lodge with ASIC under the Corporations Act, and so the audit is the choice of the members.

In the event that your client elects to prepare a general purpose financial report under a fair presentation framework, even where it is not required to under the Corporations Act, the appropriate example report on which to base your audit report is found in ASA 700 Forming an Opinion and Reporting on a Financial Report Appendix 1 Illustration 1.

If the client will become a large proprietary company, it will still need to be audited unless it qualifies for audit relief under ASIC's CO 98/1417 (PDF). Note that application for the relief must be made before the beginning of the financial year. 
 
If the reconstituted company will be a small proprietary company on its next reporting date, it no longer needs an audit. However, because a small proprietary company can choose to have an audit if it wishes, we recommend that you resign as auditors when the company changes its status to make it clear that your audit responsibilities have ceased. Because the company is now a small proprietary company, there is no need to seek permission to resign from ASIC. 

Copies of the class order and policy statement can be found on the ASIC website.