Illustration 4 - Comparative Financial RIllustration 4 - Comparative Financial Reports (Ref: Para. A9)

Illustration 4 - Comparative Financial Reports (Ref: Para. A9)

For purposes of this illustrative auditor’s report, the following circumstances are assumed:

 Audit of the financial report of an entity other than a listed entity. The audit is not a group audit (i.e., ASA 600 does not apply).

 The financial report is prepared by management of the entity in accordance with Australian Accounting Standards (a general purpose framework). The financial report is not 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.

 The auditor is required to report on both the current period financial report and the prior period financial report in connection with the current year’s audit.

 The auditor’s report on the prior period, as previously issued, included a qualified opinion.

 The matter giving rise to the modification is unresolved.

 The effects or possible effects of the matter on the current period’s figures are material to both the current period financial report and prior period financial reports, and require a modification to the auditor’s opinion.

 The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards).

 The auditor is not required, and has otherwise not decided, to communicate key audit matters in accordance with ASA 701.

 The auditor has not obtained any other information prior to the date of the auditor’s report.

 Those responsible for oversight of the financial report differ from those responsible for the preparation of the financial report.

 The auditor has no other reporting responsibilities required under local law.