Document ID: chunk:federal_register_of_legislation:F2023C00340:reg:10:p23
Version: federal_register_of_legislation:F2023C00340
Segment Type: reg
Provision Reference: reg 10 (pt 23/29)
Character Range: 68991–72002

Act 2001
(Fair Presentation Framework)

[Aus] Illustration 3A:

    For purposes of the 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.[#]

      * 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 exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern, and the company is considering bankruptcy.  The financial report omits the required disclosures relating to the material uncertainty.  An adverse opinion is being expressed because the effects on the financial report of such omission are material and pervasive.

      * ASA 701 applies; however, the auditor has determined that there are no key audit matters other than the matter described in the Basis for Adverse Opinion section.

      * 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 adverse 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[§]

Adverse 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, because of the omission of the information mentioned in the Basis for Adverse Opinion section of our report, the financial of ABC Company Ltd., is not 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 performance for the year then ended; and

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

Basis for Adverse Opinion

The Company's financing arrangements expired and the amount outstanding was payable on