Document ID: chunk:federal_register_of_legislation:F2023C00370:reg:9:p6
Version: federal_register_of_legislation:F2023C00370
Segment Type: reg
Provision Reference: reg 9 (pt 6/13)
Character Range: 20675–23849

the predecessor auditor's opinion may not be relevant and material to the opinion on the current period's financial report.  This may be the case where, for example, there was a scope limitation in the prior period, but the matter giving rise to the scope limitation has been resolved in the current period.

Appendix 1

(Ref: Para. A8)

Illustrations of Auditors' Reports with Modified Opinions

     * Illustration 1: An auditor's report containing a qualified opinion due to the inability of the auditor to obtain sufficient appropriate audit evidence regarding opening balances—the financial report is not prepared under the Corporations Act 2001.

     * Illustration 2: [Example Auditor's Report deleted by the AUASB—not applicable in Australia.]

     * [Aus] Illustration 2A: An auditor's report containing a qualified opinion due to the inability of the auditor to obtain sufficient appropriate audit evidence regarding opening balances—the financial report is prepared under the Corporations Act 2001.

    Note: Throughout these illustrative auditor's reports, the Opinion section has been positioned first in accordance with ASA 700, and the Basis for Opinion section is positioned immediately after the Opinion section.  Also, the first and last sentence that was included in the extant auditor's responsibilities section is now subsumed as part of the new Basis for Opinion section.

Example Auditor's Report
Qualified Opinion—Jurisdiction Prohibits a Qualified Opinion on Performance and Cash Flows and an Unmodified Opinion on Financial Position

(Fair Presentation Framework)
Illustration 1:
For purposes of this illustrative auditor's report, the following circumstances are assumed:
                    Audit of the financial report of an entity other than a listed entity.  The audit is not a group audit (i.e., ASA 600[6] does not apply).
                    The financial report is prepared by management of the entity in accordance with Australian Accounting Standards (a general purpose framework).  The financial report is not prepared under the Corporations Act 2001.
                    The terms of the audit engagement reflect the description of management's responsibility for the financial report in ASA 210.[7]
                    The auditor did not observe the counting of the physical inventory at the beginning of the current period and was unable to obtain sufficient appropriate audit evidence regarding the opening balances of inventory.
                    The possible effects of the inability to obtain sufficient appropriate audit evidence regarding opening balances of inventory are deemed to be material but not pervasive to the entity's financial performance and cash flows.[8]
                    The financial position at year end is fairly presented.
                    In this jurisdiction, law and regulation prohibit the auditor from giving an opinion which is qualified regarding the financial performance and cash flows and unmodified regarding financial position.
                    The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board's APES