12: Reporting Flashcards
What element of the auditors report is below?
The auditor’s report shall have a xxxxx that clearly indicates that it is the report of an independent auditor, this distinguishes this report from any other.
Title
What element of the auditors report is below?
The auditor’s report shall be addressed as required by the circumstances of the engagement, it is determined by law or regulation but is usually to the shareholders.
The addressee
What element of the auditors report is below?
When expressing an unmodified opinion the auditor’s opinion shall either state that the financial statements ‘present fairly’ or ‘give a true and fair view’ in accordance with the applicable financial reporting framework.
The opinion paragraph
What element of the auditors report is below?
Provides a description of the professional standards applied during the audit to provide confidence to users that the report can be relied upon.
The basis of opinion
What element of the auditors report is below?
To draw attention to any other significant matters of which the users should be aware of, to aid their understanding of the entity. (This section is only compulsory for listed entities)
The key audit matters
What element of the auditors report is below?
To clarify that management are responsible for the other information such as the Chairman’s statement.
Other information
What element of the auditors report is below?
This section of the auditor’s report describes the responsibilities of those in the organisation who are responsible for the preparation of the financial statements.
Management’s responsibility for the financial statements
What element of the auditors report is below?
The auditor’s report shall state that the responsibility of the auditor is to express an opinion on the financial statements based on the audit and that the audit was conducted in accordance with International Standards on Auditing and ethical requirements and that the auditor plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
Auditors responsibility
What element of the auditors report is below?
If the auditor addresses other reporting responsibilities in the auditor’s report,
these shall be addressed in a separate section in the auditor’s report titled ‘Report on Other Legal and Regulatory Requirements’.
Other reporting responsibilities
What element of the auditors report is below?
To identify the person responsible for the audit opinion in case of any queries.
The name of the engagement partner
What element of the auditors report is below?
The auditor’s report must be signed, this is normally the personal name of the auditor or, if a partner is signing on behalf of the audit firm, then the signature is of the name of the firm.
Signature of the partner
What element of the auditors report is below?
The auditor’s report shall be dated no earlier than the date on which the auditor has obtained sufficient appropriate audit evidence on which to base the auditor’s opinion on the financial statements.
Date of the auditors report
What element of the auditors report is below?
The auditor’s report shall name the location where the auditor practises
Auditors address
What are key audit matters? KAM’s
Areas considered to be susceptible to higher risks of material misstatement
Significant auditors judgements in relation to areas of FS that required significant management judgements. E.g estimates with high uncertainty
Effect of audit of significant events and transactions
How should each KAM be described in the auditors report?
- Why matter was included
- How it was addressed
