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Definitions C

Cap and trade to Cut off date

Term

Definition

Cap and trade  a system that sets overall emissions limits, allocates emissions allowances to participants, and allows them to trade allowances and emission credits with each other. 
Carve out method (in the context of ASAE 3150) a method of dealing with controls operating at a third party, which are integral to the system or control component which is subject to the engagement, whereby that third party’s relevant control objectives and related controls are excluded from the scope of the assurance practitioner’s engagement. The scope of the assurance practitioner’s engagement includes controls at the entity to monitor the effectiveness of controls which form part of the entity’s system, operating at the third party.
Carve out method (in the context of ASAE 3402)  a method of dealing with the services provided by a subservice organisation, whereby the service organisation’s description of its system includes the nature of the services provided by a subservice organisation, but that subservice organisation’s relevant control objectives and related controls are excluded from the service organisation’s description of its system and from the scope of the service auditor’s engagement. The service organisation’s description of its system and the scope of the service auditor’s engagement include controls at the service organisation to monitor the effectiveness of controls at the subservice organisation, which may include the service organisation’s review of an assurance report on controls at the subservice organisation.
Change period  the period specified by the requesting parties ending on the cut off date and begins for balance sheet items, immediately after the date of the latest balance sheet, and for profit and loss items, immediately after the latest period for which such items are included in, or incorporated by reference, in the offering document and does not extend beyond the day before the date of the end of the entity’s next financial reporting period.
Closing date  the date on which the issuer of the securities or selling security holder delivers the securities to the underwriter in exchange for the proceeds of the offering.
Comfort letter  a letter issued by an auditor in accordance with this ASRS under the terms of the engagement letter to requesting parties in relation to an entity’s financial information related to, and/or included in an offering document.
Company limited by guarantee  a company limited by guarantee whose obligations are set out in section 285A of the ACNC Act.
Comparative financial report comparative information where amounts and other disclosures for the prior period are included for comparison with the financial report of the current period but, if audited, are referred to in the auditor’s opinion.  The level of information included in that comparative financial report is comparable with that of the financial report of the current period.
Comparative information  the amounts and disclosures included in the financial report in respect of one or more prior periods in accordance with the applicable financial reporting framework. 
Comparative information (in the context of ASAE 3410) the amounts and disclosures included in the GHG statement in respect of one or more prior periods.
Comparative information (in the context of ASAE 3610) the volumes and disclosures included in the general purpose water accounting report in respect of one or more prior periods.
Comparison date and comparison period the dates as of which, and periods for which, data at the cut off date and data for the change period are to be compared.
Compensating control  a control which makes up for a deficiency in another control in mitigating the risks that threaten achievement of a control objective. 
Complementary user entity controls  controls that the service organisation assumes, in the design of its service, will be implemented by user entities, and which, if necessary to achieve control objectives, are identified in the description of its system. 
Complementary user entity controls (in the context of ASAE 3150) controls that an entity, which is a service organisation, assumes, in the design of its service, will be implemented by user entities or clients, and which, if necessary to achieve control objectives stated in the entity’s description of its system, are identified in that description.
Complementary user entity controls (in the context of ASAE 3402) controls that the service organisation assumes, in the design of its service, will be implemented by user entities, and which, if necessary to achieve control objectives stated in the service organisation’s description of its system, are identified in that description.
Complete set of financial statements  financial statements and related notes as determined by the requirements of the applicable financial reporting framework.  For example, a complete set of financial statements as described in Accounting Standard AASB 101 Presentation of Financial Statements includes:

(a) a statement of financial position as at the end of the period;

(b) a statement of comprehensive income for the period;

(c) a statement of changes in equity for the period;

(d) a statement of cash flows for the period; and

(e) notes, comprising a summary of significant accounting policies and other explanatory information
Complete set of financial statements (in the context of ASRE 2400)  financial statements and related notes as determined by the requirements of the applicable financial reporting framework.
Compliance   adherence by the entity to the requirements as measured by the suitable criteria. 
Compliance activity (subject matter or underlying subject matter) the activity that is undertaken to meet the compliance requirement(s).
Compliance engagement  an assurance engagement in which an assurance practitioner expresses a conclusion, after evaluating an entity’s compliance with the requirements as measured by the suitable criteria. 
Compliance framework (relating to financial reporting) (see Applicable financial reporting framework and General purpose framework
Compliance framework (in the context of ASAE 3100—not relating to financial reporting)  a framework used by the entity, which is designed to ensure that the entity achieves compliance, and includes governance structures, programs, processes, systems, controls and procedures. 
Compliance outcome (subject matter information) the outcome of the evaluation of the underlying subject matter (compliance activity) against the compliance requirements, using the criteria. The compliance outcome is the Statement of the responsible party or evaluator in an attestation engagement on compliance, or the assurance practitioner’s conclusion in a direct engagement on compliance, providing the outcome of their evaluation.
Compliance requirement(s)  the requirements established in law, regulations, other statutory requirements (e.g. ASIC Class Orders and Regulatory Guides and APRA Prudential Standards), contractual arrangements, ministerial directives, industry or professional obligations or internally via entity policies, procedures and frameworks.
Component an entity or business activity for which group or component management prepares financial information that should be included in the group financial report.
Component auditor an auditor who, at the request of the group engagement team, performs work on financial information related to a component for the group audit.
Component management management, or those charged with governance, responsible for the preparation of the financial information of a component. 
Component materiality  the materiality level for a component determined by the group engagement team. 
Components of control  the integrated components which comprise the system of control, as defined by the control framework applied.
Computer assisted audit techniques  applications of auditing procedures using the computer as an audit tool (also known as CAATs).
Concise financial report  a financial report for the year referred to in the Corporations Act 2001 drawn up in accordance with accounting standard AASB 1039 Concise Financial Reports
Consolidation process 

(a) The recognition, measurement, presentation, and disclosure of the financial information of the components in the group financial report by way of consolidation, proportionate consolidation, or the equity or cost methods of accounting; and 

(b) The aggregation in combined financial reports of the financial information of components that have no parent but are under common control. 

Control activities  the actions established by policies and procedures that help ensure that management directives to mitigate the risks to the achievement of objectives are carried out.
Control environment the governance and management functions and the attitudes, awareness and actions of those charged with governance and management concerning the entity’s internal control and its importance in the entity.  The control environment is a component of internal control.
Control objective (in the context of ASAE 3150)  the aim or purpose of a particular aspect of controls. Control objectives relate to risks that controls seek to mitigate and may be categorised by the framework applied, such as operational (economy, effectiveness and efficiency), reporting (statutory or management, financial or non financial) or compliance (adherence to laws and regulations or contractual obligations).
Control objective (in the context of ASAE 3402)  the aim or purpose of a particular aspect of controls. Control objectives relate to risks that controls seek to mitigate. 
Control or internal control (in the context of ASAE 3150)  the process designed, implemented and maintained by those charged with governance, management and other personnel to mitigate the risks which may prevent achievement of control objectives relating to the entity’s system. Controls included in the scope of the assurance engagement may comprise any aspects of one or more components of control over an area(s) of activity within a defined boundary, such as the group, entity, facility or location.
Control risk (see Risk of material misstatement)
Controls at a subservice organisation  controls at a subservice organisation to provide reasonable assurance about the achievement of a control objective.
Controls at the service organisation  controls over the achievement of a control objective that is covered by the service auditor’s assurance report.
Corporate fundraising (“fundraising”)  any transaction involving shares, debentures, units or interests in a management investment scheme undertaken to raise debt or equity funds, or issue equity, and/or offer and/or respond to an offer of, cash and/or scrip consideration to effect a transaction through the issuance of a public or non public document. It includes initial public offerings, fundraisings, takeovers, schemes of arrangement or other corporate restructures.
Corporate governance (see Governance)
Corresponding figures  comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial report, and are intended to be read only in relation to the amounts and other disclosures relating to the current period (referred to as “current period figures”).  The level of detail presented in the corresponding amounts and disclosures is dictated primarily by its relevance to the current period figures.   
Criteria   the benchmarks used to measure or evaluate the underlying subject matter. The “applicable criteria” are the criteria used for the particular engagement.
Criteria (in the context of ASAE 3100)  the benchmark, framework or legislation used to evaluate whether the compliance requirements have been met. The “applicable criteria” are the criteria used for the particular engagement.
Criteria (in the context of ASAE 3500) the benchmarks used to measure or evaluate the underlying subject matter, which in a performance engagement is the activity. The “identified criteria” are the criteria used for the particular engagement.
Criteria (in the context of ASAE 3610) the benchmarks used to quantify or evaluate the underlying subject matter. Australian Water Accounting Standard (AWAS 1) provides criteria for the preparation and presentation of a general purpose water accounting report.
Cross border offering  an offering or listing that occurs in a jurisdiction other than the entity’s domicile, and which may or may not occur concurrently in the entity’s domicile.
Cut off date  the date to which certain procedures performed on change period financial information, as described in the comfort letter, are to relate.