Illustration of an Auditor’s Report ContIllustration of an Auditor’s Report Containing a Qualified Opinion Due to a Departure from the Applicable Financial Reporting Framework and that Includes an Emphasis of Matter Paragraph

Illustration of an Auditor’s Report Containing a Qualified Opinion Due to a Departure from the Applicable Financial Reporting Framework and that Includes an Emphasis of Matter Paragraph

Example Auditor’s Report
Single Entity (not listed)
(Fair Presentation Framework)

[Aus] Illustration 2A

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

 Audit of a financial report of an entity other than a listed entity using a fair presentation framework. 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 in accordance with the Corporations Act 2001.

 The terms of the audit engagement reflect the description of management’s responsibility for the financial report in ASA 210.

 A departure from the applicable financial reporting framework resulted in a qualified 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).

 Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does not exist related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern in accordance with ASA 570.

 Between the date of the financial report and the date of the auditor’s report, there was a fire in the entity’s production facilities, which was disclosed by the entity as a subsequent event. In the auditor’s judgement, the matter is of such importance that it is fundamental to users’ understanding of the financial report. The matter did not require significant auditor attention in the audit of the financial report in the current period.

 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.

 In addition to the audit of the financial report, the auditor has other reporting responsibilities required under law.

INDEPENDENT AUDITOR’S REPORT

To the Members of ABC Entity [or Other Appropriate Addressee]

Report on the Audit of a Financial Report[*]

Qualified Opinion