Unmodified Opinion, Emphasis of Matter pUnmodified Opinion, Emphasis of Matter paragraphCorporations Act 2001

[Aus] Appendix 3

(Ref: Para.A21‑A22 )

Illustration of an Auditor’s Report on a General Purpose Financial Report—Emphasis of Matter Paragraph due to a Material Uncertainty regarding Going Concern

 [Aus] Illustration 1: An auditor’s report on a financial report containing an Emphasis of Matter paragraph due to a material uncertainty in the financial report (prepared under the Corporations Act 2001).

See ASA 700[*] for applicable wording in the auditor’s report when the company makes a statement on compliance with International Financial Reporting Standards (IFRSs) and/or includes a Remuneration Report in the Directors’ Report.

Example Auditor’s Report

General Purpose Financial Report

Unmodified Opinion, Emphasis of Matter paragraph

Corporations Act 2001

(Fair Presentation Framework)

[Aus] Illustration 1:

 Audit of a single company financial report.

 The financial report is prepared under the Corporations Act 2001.

 The terms of the audit engagement reflect the description of management’s responsibility for the financial report in ASA 210.

 There is uncertainty resulting from a net loss for the year and net liabilities exceeding net assets.

INDEPENDENT AUDITOR’S REPORT

[Appropriate Addressee]

Report on the Financial Report[†]

We have audited the accompanying financial report of ABC Company Ltd., which comprises the statement of financial position as at 30 June 20X1, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.