example 4: schedule of accounts receivabexample 4: schedule of accounts receivable

example 4: schedule of accounts receivable

INDEPENDENT AUDITOR’S REPORT

[Appropriate Addressee]

We have audited the accompanying schedule of accounts receivable and summary of significant accounting policies and explanatory notes of [name of entity] for the year ended 30 June 20XX.

The [Responsibility of Those Charged with Governance][9] for the Schedule

[Those charged with governance] are responsible for the preparation and fair presentation of the schedule in accordance with Australian Accounting Standards for the purpose of complying with section X or loan agreement Y between [name of entity] and DEF Bank. This responsibility includes determining that the Australian Accounting Standards are an acceptable basis for preparing and fairly presenting the schedule in the circumstances; establishing and maintaining internal controls relevant to the preparation and fair presentation of the schedule 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 schedule 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 schedule is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the schedule. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the schedule whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the schedule 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 [those charged with governance], as well as evaluating the overall presentation of the schedule.

The schedule of accounts receivable and significant accounting policies and explanatory notes have been prepared in accordance with Australian Accounting Standards for the purposes of complying with section X of loan agreement Y between [name of entity] and DEF Bank. The schedule may not be suitable for another purpose. Our report is intended solely for [name of entity] and DEF Bank and should not be distributed to or used by parties other than [name of entity] or DEF Bank.