Since the auditor’s report was enhanced, there has been divergence in practice in relation to the format and content of interim review reports under NZ SRE 2410. Therefore, in the interest of consistency, we support the proposed alignment of the auditor’s interim review report with the enhanced annual auditor’s report.
Although the NZAuASB and AUASB are working together on this project, they have come up with two different options to describe the auditor’s responsibilities in relation to going concern in the interim review report. We believe the NZAuASB’s option more closely reflects the auditor’s responsibility in relation to going concern. Although we do not agree with the first sentence because there is no requirement in the standard for an explicit conclusion on the appropriateness of the use of the going concern basis of accounting in the review report itself.
In our view, the compelling reason test in the Trans-Tasman harmonisation principles for differences to exist is not met, and therefore a difference is not in the public interest. We strongly encourage the two boards to reach agreement on how to describe the auditor’s responsibility in relation to going concern in the interim review report.