the auditor disclaims an opinion on the financial statements. The Memorandum of Incorporation does not provide for the appointment of an audit committee • and a company secretary. The auditor has determined that the other information includes the Directors' Report , prepared in terms of the Companies Act of South Africa. The auditor has obtained all of the other information prior to the date of the auditor's reports and has not identified a material inconsistency between the other information and the financial statements, or between the other information and the auditor's knowledge obtained in the audit or a material misstatement of the other information.

###### Independent Auditor's Report

######## To the Shareholders of ABC Proprietary Limited Disclaimer of Opinion on the Financial Performance and Cash Flows and Qualified Opinion on the Financial Position

We have audited the financial statements of ABC Proprietary Limited set out on pages …to …, which comprise the statement of financial position as at 31 December 20XX; and the statement of profit or loss and other comprehensive income; the statement of changes in equity; and the statement of cash flows for the year then ended; and notes to the financial statements, including material accounting policy information.

Wedo not express an opinion on the financial performance and cash flows of ABC Proprietary Limited for the year ended 31 December 20XX. Because of the significance of the matter described in the Basis for Opinions section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial performance and cash flows. In our opinion, except for the possible effects of the matter described in the Basis for Opinions section of our report on the comparability of the current year's financial position with that of the prior year , the financial statements present fairly, in all material respects, the financial position of ABC Proprietary Limited as at 31 December 20XX, in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board and the requirements of the Companies Act of South Africa. Basis for Opinions, Including Basis for Disclaimer of Opinion on the Financial Performance and Cash Flows and Qualified Opinion on the Financial Position Corresponding figures presented in these financial statements were subject to an independent review, in terms of the Companies Act of South Africa, for the year ended 31 December 20XX and a review conclusion was issued on those figures. In the current year, the directors requested an audit to be performed, as the Companies Act of South Africa required one. However, the directors did not believe that the retrospective application of additional procedures on the opening balances was warranted, as the level of assurance in the prior year was appropriate in accordance with the Companies Act of South Africa. We therefore only have limited assurance on the opening balances. Due to the matter above, we were unable to obtain sufficient appropriate audit evidence that the closing balances as at 31 December 20XX were free of material misstatement, and have been brought forward correctly. We were unable to satisfy ourselves by alternative means concerning the opening balances. Since opening balances enter into the determination of the financial performance and cash flows, we were unable to determine whether adjustments might have been necessary in respect of the movements in the statement of comprehensive income, the net cash flows from operating activities reported in the statement of cash flows and the changes in equity reported in the statement of changes