Commonwealth legislation

ASA 700 - Forming an Opinion and Reporting on a Financial Report - December 2015

In ForceCTH

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

8/10 complexity

**What this standard does (mechanically)

Sets out what an auditor must do to form an opinion on a financial report and how that opinion must be presented in the auditor’s written report. (See: Requirements — "Forming an Opinion" and "Auditor’s Report".)
Prescribes the structure and minimum content of the auditor’s report (Opinion; Basis for Opinion; Responsibilities sections; Going Concern; Key Audit Matters; Other Information; signature, address and date). It also includes illustrative auditor’s reports for common situations (single company, group, listed/unlisted, compliance frameworks). (See: "Auditor’s Report" and Appendix 1.)
Requires the Auditor to conclude whether they obtained reasonable assurance and to evaluate qualitative aspects of accounting, the appropriateness of accounting policies, estimates, disclosures, and (for fair‑presentation frameworks) whether the report "achieves fair presentation." (See: Requirements — paragraphs under "Forming an Opinion" and Application material A1–A9.)
Implements Australia‑specific additions (labelled "Aus") on a small number of matters: specifying the Australian ethical requirements to be named in the report; recording when the auditor has early‑adopted a standard; when the engagement partner’s name is required; dating the report as of the signature; and prescribing AUASB website references and illustrative forms consistent with the Corporations Act. (See: Aus 28.1(c); Aus 42.1; Aus 46.1; Aus 49.1; Aus A57.1; Aus 50.1(e)/(l).)

Who this affects

Auditors and audit firms: changes the content they must include in auditor’s reports and increases the matters they must consider and document before issuing an opinion (e.g. explicit evaluation of qualitative accounting matters, disclosure of the ethical regime applied). (Requirements and Aus additions.)

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Current sections

Direct links to the current provisions in ASA 700 - Forming an Opinion and Reporting on a Financial Report - December 2015.

Obtaining a Copy of this Auditing Standa

Obtaining a Copy of this Auditing Standard

The most recently compiled versions of Auditing Standards, original Standards and amending Standards (see Compilation Details) are available on the AUASB website: www.auasb.gov.au

Contact Details

Auditing and Assurance Standards BoardPhone: (03) 8080 7400E‑mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA

COPYRIGHT

© 2025 Commonwealth of Australia. The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source as being the Australian Auditing and Assurance Standards Board (AUASB).

Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Director-National, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.

This Auditing Standard reproduces substantial parts of the corresponding International Standard on Auditing issued by the International Auditing and Assurance Standards Board (IAASB) and published by the International Federation of Accountants (IFAC), in the manner described in the statement on Conformity with International Standards on Auditing. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Auditing incorporated in this Auditing Standard throughout the world.

All existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use only.

Further information and requests for authorisation to reproduce this Auditing Standard for commercial purposes outside Australia should be addressed to the Director-National, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Any decision to approve a request may also require the agreement of IFAC.

ISSN 1833‑4393

CONTENTS

COMPILATION DETAILS

AUTHORITY STATEMENT

CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING

Paragraphs

Application...............................................Aus 0.1‑Aus 0.2

Operative Date.........................................................Aus 0.3

Introduction

Scope of this Auditing Standard..........................................1‑4

Effective Date...............................................................5

Objectives..................................................................6

Definitions....................................................7‑Aus 9.1

Requirements

Forming an Opinion on the Financial Report...............................10‑15

Form of Opinion...................................................16‑19

Auditor’s Report...................................................20‑52

Supplementary Information Presented with the Financial Report.................53‑54

Application and Other Explanatory Material

Qualitative Aspects of the Entity’s Accounting Practices......................A1‑A3

Accounting Policies Appropriately Disclosed in the Financial Report......................A4

Information Presented in the Financial Report Is Relevant, Reliable, Comparable and UnderstandableA5

Disclosures of the Effect of Material Transactions and Events on the Information Conveyed in the Financial Report A6

Evaluating Whether the Financial Report Achieves Fair Presentation.............A7‑A9

Description of the Applicable Financial Reporting Framework................A10‑A15

Form of Opinion.................................................A16‑A17

Auditor’s Report.................................................A18‑A77

Supplementary Information Presented with the Financial Report..............A78‑A84

Appendix: Illustrations of Independent Auditor’s Reports on Financial Reports

COMPILATION DETAILS

Obtaining a Copy of this Auditing Standard

The most recently compiled versions of Auditing Standards, original Standards and amending Standards (see Compilation Details) are available on the AUASB website: www.auasb.gov.au

Contact Details

Auditing and Assurance Standards BoardPhone: (03) 8080 7400E‑mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA