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Auditing standards: standard-specific issues
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List of Q&As relating to Auditing standards: standard-specific issues: 
 
Going concern emphasis of matter wording (ANT46/2009) 
Superannuation audit reports (ANT42/2008) 
File completion guidelines (ANT40/2008) 
 

 
Going concern emphasis of matter wording 
as reported in ANT46/2009 
 
Q: Example 1 of Appendix 3 to the existing auditing standard ASA 570 Going Concern contains a specimen independent auditor’s report dealing with inclusion of an emphasis of matter paragraph regarding going concern. However, this specimen report appears to omit some wording required in order to comply with the mandatory (black letter) requirements of the standard. Is this correct? 
 
A: Yes. ASA 570 paragraph 39 requires that the emphasis of matter paragraph in the auditor’s report shall state clearly "that there is a significant uncertainty whether the entity will continue as a going concern and, therefore, whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report", 
 
However the specimen independent auditor’s report in Example 1 of Appendix 3 includes a modification paragraph that does not mention the words in bolded italics above; the example concludes at the words “going concern”. Therefore if you are issuing a modified audit report containing a going concern paragraph you need to be careful to ensure the audit report is worded in accordance with the requirements of the standards and to include the words in bolded italics above. 
 
Examples contained in the newly issued auditing standards in "Clarity" format that are applicable for audits of financial reporting periods commencing on or after 1 January 2010 deal with this matter and any inconsistencies between the mandatory requirements of the standards and the examples have been removed. 
 
 
Superannuation audit reports 
as reported in ANT42/2008 
 
Q: Item 11 ANT37/2008 (26 September 2008) announced the release by the ATO of new self-managed superannuation funds (SMSF) audit reports. Do these reports apply to the current financial year (i.e. years ending 30 June 2008)? 
 
A: Yes. The new reports are to be used for financial years ending on or after 30 June 2008 by members who are an approved auditor, and have been appointed by a trustee of a SMSF to give a report on the operation of that fund for each income year. 
 
The ATO application date of 1 July 2008 refers to the date when the audit report is signed. 
 
As noted in the item 11 ANT37/2008 item, the ATO has also released Auditing a self-managed super fund – questions and statements to consider when auditing a self-managed superannuation fund (SMSF). It can be viewed on the ATO website. 
 
 
File completion guidelines 
as reported in ANT40/2008 
 
Q. Do my audit workpapers have to be completely assembled before the audit report is signed? 
 
A: No. ASA 230 Documentation covers this issue at paragraphs 28-30. 
 
While ASA 230 expects the auditor to have completed all the procedures necessary to support the issue of an audit opinion prior to the issue of that opinion, paragraph 28 does permit the final assembly of the audit file to be completed in a timely manner after that date. 
 
Paragraph 29 states that a firm’s individual quality control procedures will usually determine the firm’s policy on an appropriate ‘timely’ time frame. However, in the absence of any other specified limit, it indicates an appropriate deadline of 60 days.  
 
Paragraph 30 sets out the kinds of tasks the standard envisages as being part of this final assembly process. They include sorting, collating and cross-referencing work papers, documenting audit evidence obtained prior to the audit report being signed, as well as the completion of checklists related to the final file assembly process. The paragraph makes it clear that this is purely administrative work. Once the audit report is signed, you should not be performing any new audit procedures or drawing any new or different conclusions.