Report on the Financial Report[25]Report on the Financial Report[25]

Report on the Financial Report[25]

We were engaged to audit the accompanying financial report of ABC Entity, 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 management’s assertion statement.

Management’s[26] Responsibility for the Financial Report

Management is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and [relevant reporting framework],[27] and for such internal control as management determines is necessary to enable the preparation and fair presentation of the 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 conducting the audit in accordance with Australian Auditing Standards. Because of the matter described in the Basis for Disclaimer of Opinion paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Basis for Disclaimer of Opinion

The entity’s investment in its joint venture XYZ (Country X) Entity is carried at xxx on the entity’s statement of financial position, which represents over 90% of the entity’s net assets as at 30 June 20X1. We were not allowed access to the management and the auditors of XYZ, including XYZ’s auditors’ audit documentation. As a result, we were unable to determine whether any adjustments were necessary in respect of the entity’s proportional share of XYZ’s assets that it controls jointly, its proportional share of XYZ’s liabilities for which it is jointly responsible, its proportional share of XYZ’s income and expenses for the year, and the elements making up the statement of changes in equity and the statement of cash flows.

Disclaimer of Opinion

Because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial report.