Document ID: chunk:federal_register_of_legislation:F2021C01247:reg:10:p11
Version: federal_register_of_legislation:F2021C01247
Segment Type: reg
Provision Reference: reg 10 (pt 11/21)
Character Range: 34985–37916

cash flow statement for the year then ended, and notes to the financial report, including a summary of significant accounting policies and management's assertion statement[*].

In our opinion, the accompanying financial report of the Company for the year ended 31 December 20X1 is prepared, in all material respects, in accordance with the financial reporting provisions of Section Z of the contract dated 1 January  20X1 between the Company and DEF Company ("the contract").

Basis for Opinion

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, and we have 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 opinion.

Emphasis of Matter – Basis of Accounting and Restriction on Distribution and Use

We draw attention to Note X to the financial report, which describes the basis of accounting.  The financial report is prepared to assist the Company in complying with the financial reporting provisions of the contract referred to above.  As a result, the financial report may not be suitable for another purpose.  Our report is intended solely for the Company and DEF Company and should not be distributed to or used by parties other than the Company or DEF Company.  Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the Financial Report[26]

Management is responsible for the preparation of the financial report in accordance with the financial reporting provisions of Section Z of the contract and for such internal control as management determines is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from