Document ID: chunk:federal_register_of_legislation:F2023C00335:body:0:p15
Version: federal_register_of_legislation:F2023C00335
Segment Type: other
Provision Reference: 
Character Range: 39979–42893

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

We have audited the financial report of ABC Entity (the Entity), which comprises the statement of financial position as at 30 June 20X1, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial report, including material accounting policy information, and the declaration by those charged with governance.[#]

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial report presents fairly, in all material respects, (or gives a true and fair view of) the financial position of the Entity as at 30 June 20X1, and (of) its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards.

Basis for Qualified Opinion

The Entity's short‑term marketable securities are carried in the statement of financial position at $xxx.  Management has not marked these securities to market but has instead stated them at cost, which constitutes a departure from Australian Accounting Standards.  The Entity's records indicate that had management marked the marketable securities to market, the Entity would have recognised an unrealised loss of $xxx in the statement of comprehensive income for the year.  The carrying amount of the securities in the statement of financial position would have been reduced by the same amount at 30 June 20X1, and income tax, net income and shareholders' equity would have been reduced by $xxx, $xxx and $xxx, respectively.

We conducted our audit in accordance with Australian Auditing Standards.  Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report.  We are independent of the Company in accordance with the ethical requirements of the Accounting Professional & Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Emphasis of Matter – Effects of a Fire

We draw attention to Note X of the financial report, which describes the effects of a fire in the Entity's production facilities.  Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the