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Definitions D

Date of report to Domestic offering

Term

Definition

Date of report the date the assurance practitioner signs the report. 
Date of the auditor’s report the date the auditor dates the report on the financial report in accordance with ASA 700.
Date of the financial report the date of the end of the latest period covered by the financial report. Date of approval of the financial report means the date on which all the statements that comprise the financial report, including the related notes, have been prepared and those with the recognised authority have asserted that they have taken responsibility for that financial report.
Date the financial report is issued the date that the auditor’s report and audited financial report are made available to third parties.
Deficiency in design of controls  an inadequacy or omission in the design of a control/s that, in the assurance practitioner’s professional judgement, means the control/s is not designed suitably to mitigate the risks that threaten achievement of the identified control objective/s.
Deficiency in implementation of controls  instances where a control was not implemented as designed that, in the assurance practitioner’s professional judgement, mean the controls, once in operation, may not operate effectively as designed to achieve the identified control objectives. 
Deficiency in internal control (a) A control is designed, implemented or operated in such a way that it is unable to prevent, or detect and correct, misstatements in the financial report on a timely basis; or

(b) A control necessary to prevent, or detect and correct, misstatements in the financial report on a timely basis is missing.
Description of the system a document prepared by the responsible party and provided to users, if included in the scope of the engagement, describing the entity’s system, within which the controls to be concluded upon operate, including identification of: the functions or services covered; the period or date to which the description relates; control objectives and details of, or reference to documentation detailing, the controls designed to achieve those objectives. The entity’s functions or services may be identified by geographic, operational or functional boundaries. A description of the system is distinct from documentation prepared by the responsible party or assurance practitioner, as the description is part of the subject matter of the engagement, which, if included in the scope of the engagement, is made available to users and concluded upon by the assurance practitioner. A description may be included in the scope of an attestation or direct engagement, however in a direct engagement no attestation is provided by the responsible party or evaluator with respect to whether the description is fairly presented.
Detection risk  the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that could be material, either individually or when aggregated with other misstatements.  
Deviation in operating effectiveness of controls  instances where a control was not operating as designed. 
Different elements of prospective financial information

(i) the assumptions used in the preparation of the prospective financial information; (element 1)

(ii) the stated basis of preparation and the assumptions referred to in (i) above; (element 2) and

(iii) its reasonableness (element 3). 

Direct assistance  the use of internal auditors to perform audit procedures under the direction, supervision and review of the external auditor.
Direct controls  controls which directly address the risks of a control objective not being achieved, by detecting, preventing or correcting a failure to achieve a control objective on a timely basis.
Direct engagement on compliance  a reasonable or limited assurance engagement in which the assurance practitioner evaluates whether the compliance requirements have been met. The compliance outcome of the assurance practitioner’s evaluation (the subject matter information) is expressed in the assurance practitioner’s conclusion.
Direct engagement on controls  a reasonable or limited assurance engagement in which the assurance practitioner evaluates the design of the controls against the control objectives, and, if included in the scope of the engagement, the description, implementation and/or operating effectiveness of controls against the design. The outcome of the assurance practitioner’s evaluation (the subject matter information) is expressed in the assurance practitioner’s conclusion.
Direct engagement on performance  a reasonable assurance engagement in which the assurance practitioner evaluates the activity’s performance against the identified criteria. The outcome of the assurance practitioner’s evaluation is expressed in the assurance practitioner’s conclusion. 
Document  a public document or non public document related to a corporate fundraising or other document containing prospective financial information.
Domestic offering  a securities offering that occurs in Australia.