example 2: statement of cash receipts anexample 2: statement of cash receipts and disbursements

example 2: statement of cash receipts and disbursements

INDEPENDENT AUDITOR’S REPORT

[Appropriate Addressee]

We have audited the accompanying statement of cash receipts and disbursements of [name of entity] for the year ended 30 June 20XX.

The Responsibility of [Those Charged with Governance][7] for the Financial Statement

[Those charged with governance] are responsible for the preparation and presentation of this statement in accordance with the cash receipts and disbursements basis of accounting described in Note X for the purpose of providing information to XYZ creditor. This responsibility includes establishing and maintaining internal controls relevant to the preparation and presentation of the statement that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and presentation of the statement 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statement.

The statement of cash receipts and disbursements has been prepared in accordance with the cash receipts and disbursements basis of accounting described in Note X for purposes of providing information to XYZ Creditor. The statement may not be suitable for another purpose. Our report is intended solely for [name of entity] and XYZ Creditor and should not be distributed to or used by parties other than [name of entity] or XYZ Creditor.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.