Audit Report

Question 1

Auditor’s opinion

Answer 1

“In our opinion, the financial statements present fairly, in all material respects, the financial position of ___ as at Dec 31, 20x1, and its financial performance and its cash flows for the year ended in accordance with IFRS.

Question 2

Format of the auditor’s report

Answer 2

1. Title
2. Addressee
3. Introductory paragraph
4. Auditor’s opinion
5. Basis for opinion
6. Material uncertainty related to going concern
7. Key audit matters
8. Other information
9. Responsibilities of mgmt and those charged with governance for the FS
10. Auditor’s responsibilities for the audit

Question 3

Basis of opinion

Answer 3

conducted in accordance with GAAS, independent of the company, audit evidence sufficient and appropriate to provide basis for opinion

Question 4

Mgmt’s responsibilities

Answer 4

preparation of FS in accordance with GAAP and for internal control assessment of ability to continue as going concern

Question 5

Auditor’s responsibilities

Answer 5

To obtain reasonable assurance and form an opinion, conduct audit in accordance with CAS, describes an audit.

Question 6

EOM

Answer 6

provides additional information about an appropriately presented issue, due to its importance

Question 7

Other matters paragraph

Answer 7

Provides additional information about a matter other than those presented or disclosed that is relevant tot he users’ understanding of the auditor’s report

Question 8

Material uncertainty

Answer 8

• Relates to GC paragraph, provides information on material uncertainty as disclosed in FS.

Question 9

Key audit matters

Answer 9

• provides additional information on matters significant to the audit and how they were addressed in the audit.

Question 10

Unmodified opinion

Answer 10

Misstatements are immaterial (individually or in aggregate)

Question 11

Qualified opinion

Answer 11

• Misstatements are material, but NOT pervasive. or
• auditor unable to gain sufficient audit evidence to make an opinion, but possible effects could be material but not pervasive.

Question 12

Adverse opinion

Answer 12

• Misstatements are BOTH material and pervasive to the FS

Question 13

Disclaimer of opinion

Answer 13

Auditor unable to obtain sufficient appropriate audit evidence to make an opinion, and concludes that effects could be both material and pervasive.

Due to a scope limitation.