Document ID: chunk:federal_register_of_legislation:F2023C01137:body:0:p16
Version: federal_register_of_legislation:F2023C01137
Segment Type: other
Provision Reference: 
Character Range: 43861–46881

Auditor's Report
Single Company—Corporations Act 2001
(Fair Presentation Framework)

[Aus] Illustration 1A:  Qualified Opinion due to a Material Misstatement of the Financial Report

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

      * Audit of the financial report of a single listed company.  The audit is not a group audit (i.e. ASA 600 does not apply).

      * The financial report is prepared by the directors of the company in accordance with Australian Accounting Standards (a general purpose framework) and under the Corporations Act 2001.

      * The terms of the audit engagement reflect the description of the directors' responsibility for the financial report in ASA 210.

      * Inventories are misstated.  The misstatement is deemed to be material but not pervasive to the financial report (i.e., a qualified opinion is appropriate).

      * 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 company's ability to continue as a going concern in accordance with ASA 570.

      * Key audit matters have been communicated in accordance with ASA 701.

      * The auditor has obtained all of the other information prior to the date of the auditor's report and the matter giving rise to the qualified opinion on the financial report also affects the other information.

      * In addition to the audit of the financial report, the auditor has other reporting responsibilities required under section 308(3C) of the Corporations Act 2001.

INDEPENDENT AUDITOR'S REPORT

[Appropriate Addressee]

Report on the Audit of the Financial Report[#]

Qualified Opinion

We have audited the financial report of ABC Company Ltd.  (the Company), 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 statements, including material accounting policy information, and the directors' declaration.

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 of ABC Company Ltd., is in accordance with the Corporations Act 2001, including:

    (a)                giving a true and fair view of the company's financial position as at 30 June 20X1 and of its financial performance for the year then ended; and

    (b)                complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Qualified Opinion

The Company's inventories are carried in the statement of financial position at $xxx.  The directors have not stated