Auditor’s Report

Auditor’s Report

1. The auditor’s report shall be in writing. (Ref: Para. A13‑A14)

Auditor’s Report for Audits Conducted in Accordance with Australian Auditing Standards

Title

1. The auditor’s report shall have a title that clearly indicates that it is the report of an independent auditor. (Ref: Para. A15)

Addressee

1. The auditor’s report shall be addressed as required by the circumstances of the engagement. (Ref: Para. A16)

Introductory Paragraph

1. The introductory paragraph in the auditor’s report shall: (Ref: Para. A17‑A19)
   1. Identify the entity whose financial report has been audited;
   2. State that the financial report has been audited;
   3. Identify the title of each statement that comprises the financial report;
   4. Refer to the summary of significant accounting policies and other explanatory information; and
   5. Specify the date or period covered by each financial statement comprising the financial report.

Management’s Responsibility for the Financial Report

1. This section of the auditor’s report describes the responsibilities of those in the organisation who are responsible for the preparation of the financial report. The auditor’s report need not refer specifically to “management,” but shall use the term that is appropriate in the context of the legal framework in the particular jurisdiction. In some jurisdictions, the appropriate reference may be to those charged with governance.
2. The auditor’s report shall include a section with the heading “Management’s [or other appropriate term] Responsibility for the Financial Report.”
3. The auditor’s report shall describe management’s responsibility for the preparation of the financial report. The description shall include an explanation that management is responsible for the preparation of the financial report in accordance with the applicable financial reporting framework, and for such internal control as it determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. (Ref: Para. A20‑A23)
4. Where the financial report is prepared in accordance with a fair presentation framework, the explanation of management’s responsibility for the financial report in the auditor’s report shall refer to “the preparation and fair presentation of the financial report” or “the preparation of the financial report that gives a true and fair view,” as appropriate in the circumstances.

Auditor’s Responsibility

1. The auditor’s report shall include a section with the heading “Auditor’s Responsibility.”
2. The auditor’s report shall state that the responsibility of the auditor is to express an opinion on the financial report based on the audit. (Ref: Para. A24)
3. The auditor’s report shall state that the audit was conducted in accordance with Australian Auditing Standards. The auditor’s report shall also explain that those standards require that the auditor comply with relevant ethical requirements and that the auditor plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. (Ref: Para. A25‑A26)
4. The auditor’s report shall describe an audit by stating that:
   1. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report;
   2. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. In circumstances when the auditor also has a responsibility to express an opinion on the effectiveness of internal control in conjunction with the audit of the financial report, the auditor shall omit the phrase that the auditor’s consideration of internal control is not for the purpose of expressing an opinion on the effectiveness of internal control; and
   3. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as the overall presentation of the financial report.
5. Where the financial report is prepared in accordance with a fair presentation framework, the description of the audit in the auditor’s report shall refer to “the entity’s preparation and fair presentation of the financial report” or “the entity’s preparation of the financial report that gives a true and fair view,” as appropriate in the circumstances.
6. The auditor’s report shall state whether the auditor believes that the audit evidence the auditor has obtained is sufficient and appropriate to provide a basis for the auditor’s opinion.

Auditor’s Opinion

1. The auditor’s report shall include a section with the heading “Opinion.”
2. When expressing an unmodified opinion on the financial report prepared in accordance with a fair presentation framework, the auditor’s opinion shall, unless otherwise required by law or regulation, use one of the following phrases, which are regarded as being equivalent:
   1. The financial report presents fairly, in all material respects, … in accordance with [the applicable financial reporting framework]; or
   2. The financial report gives a true and fair view of … in accordance with [the applicable financial reporting framework]. (Ref: Para. A27‑A33)
3. When expressing an unmodified opinion on the financial report prepared in accordance with a compliance framework, the auditor’s opinion shall be that the financial report is prepared, in all material respects, in accordance with [the applicable financial reporting framework]. (Ref: Para. A27, A29‑A33)
4. If the reference to the applicable financial reporting framework in the auditor’s opinion is not to Australian Accounting Standards, and, where applicable, Australian law or regulation, the auditor’s opinion shall identify the jurisdiction of origin of the framework.

Aus 37.1 When an entity, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, has included in the notes to the financial statements an explicit and unreserved statement of compliance with International Financial Reporting Standards (IFRSs), and the auditor agrees with the entity’s statement of compliance, the auditor shall state that in the auditor’s opinion, the financial report complies with IFRSs. (Ref: Para. Aus A33.1‑Aus A33.2)

Other Reporting Responsibilities

1. If the auditor addresses other reporting responsibilities in the auditor’s report on the financial report that are in addition to the auditor’s responsibility under the Australian Auditing Standards to report on the financial report, these other reporting responsibilities shall be addressed in a separate section in the auditor’s report that shall be sub‑titled “Report on Other Legal and Regulatory Requirements,” or otherwise as appropriate to the content of the section. (Ref: Para. A34‑A35)
2. If the auditor’s report contains a separate section on other reporting responsibilities, the headings, statements and explanations referred to in paragraphs 23‑37 of this Auditing Standard shall be under the sub‑title “Report on the Financial Report.” The “Report on Other Legal and Regulatory Requirements” shall follow the “Report on the Financial Report.” (Ref: Para. A36 and Aus A36.1)

Signature of the Auditor

1. The auditor’s report shall be signed. (Ref: Para. A37 and Aus A37.1)

Date of the Auditor’s Report (Ref: Para. A38‑A41)

Aus 40.1 The auditor’s report shall be dated as of the date the auditor signs that report.

1. The auditor’s report shall be dated no earlier than the date on which the auditor has obtained sufficient appropriate audit evidence on which to base the auditor’s opinion on the financial report, including evidence that:
   1. All the statements that comprise the financial report, including the related notes, have been prepared; and
   2. Those with the recognised authority have asserted that they have taken responsibility for the financial report.

Auditor’s Address

1. The auditor’s report shall name the location in the jurisdiction where the auditor practices.

Auditor’s Report Prescribed by Law or Regulation

1. If the auditor is required by law or regulation of a specific jurisdiction to use a specific layout or wording of the auditor’s report, the auditor’s report shall refer to Australian Auditing Standards only if the auditor’s report includes, at a minimum, each of the following elements: (Ref: Para. A42)
   1. A title;
   2. An addressee, as required by the circumstances of the engagement;
   3. An introductory paragraph that identifies the financial report audited;
   4. A description of the responsibility of management (or other appropriate term, see paragraph 24 of this Auditing Standard) for the preparation of the financial report;
   5. A description of the auditor’s responsibility to express an opinion on the financial report and the scope of the audit, that includes:

 A reference to Australian Auditing Standards and the law or regulation; and

 A description of an audit in accordance with those standards;

1. An opinion paragraph containing an expression of opinion on the financial report and a reference to the applicable financial reporting framework used to prepare the financial report (including identifying the jurisdiction of origin of the financial reporting framework that is not Australian Accounting Standards and, where applicable, Australian law or regulation);
2. The auditor’s signature;
3. The date of the auditor’s report; and
4. The auditor’s address.

Auditor’s Report for Audits Conducted in Accordance with Both Auditing Standards of a Specific Jurisdiction and Australian Auditing Standards

1. An auditor may be required to conduct an audit in accordance with the auditing standards of a specific jurisdiction (“other auditing standards”), but may additionally have complied with the Australian Auditing Standards in the conduct of the audit. If this is the case, the auditor’s report may refer to Australian Auditing Standards in addition to the other auditing standards, but the auditor shall do so only if: (Ref: Para. A43‑A44)
   1. There is no conflict between the requirements in the other auditing standards and those in the Australian Auditing Standards that would lead the auditor (i) to form a different opinion, or (ii) not to include an Emphasis of Matter paragraph that, in the particular circumstances, is required by Australian Auditing Standards; and
   2. The auditor’s report includes, at a minimum, each of the elements set out in paragraph 43(a)‑(i) of this Auditing Standard when the auditor uses the layout or wording specified by the other auditing standards. Reference to law or regulation in paragraph 43(e) of this Auditing Standard shall be read as reference to the other auditing standards. The auditor’s report shall thereby identify such other auditing standards.
2. When the auditor’s report refers to both the other auditing standards and Australian Auditing Standards, the auditor’s report shall identify the jurisdiction of origin of the other auditing standards.