Document ID: chunk:federal_register_of_legislation:F2023C00341:reg:4:p31
Version: federal_register_of_legislation:F2023C00341
Segment Type: reg
Provision Reference: reg 4 (pt 31/42)
Character Range: 96861–99746

the group engagement partner's judgement, the effect on the financial report of this inability to obtain sufficient appropriate audit evidence is material but not pervasive.[25]

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

     * The auditor is not required, and has otherwise not decided, to communicate key audit matters 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 qualified opinion on the financial report also affects the other information.

     * Those responsible for oversight of the financial report differ from those responsible for the preparation of the financial report.

     * The auditor has no other reporting responsibilities required under local law.

INDEPENDENT AUDITOR'S REPORT

[To the Members of ABC Entity [or Other Appropriate Addressee]

Qualified Opinion

We have audited the financial report of ABC Entity and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 20X1, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, 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 of the Group presents fairly, in all material respects, (or "gives a true and fair view of") the financial position of the Group as at 30 June 20X1, and (of) its financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards.

Basis for Qualified Opinion

ABC Entity's investment in XYZ Entity, a foreign associate acquired during the year and accounted for by the equity method, is carried at $15 million on the statement of financial position as at 30 June 20X1, and ABC Entity's share of XYZ's profit of $1 million is included in the statement of comprehensive income for the year then ended.  We were unable to obtain sufficient appropriate audit evidence about the carrying amount of ABC Entity's investment in XYZ as at 30 June 20X1 and ABC's share of XYZ's profit for the year because we were denied access to the financial information, management, and the auditors of XYZ.