ACCA AAA ^UK Syllabus E. Completion, Review And Reporting - Structure of an Unmodified report - Notes ^{1 / 5}

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of ABC Company [or Other Appropriate Addressee]

Report on the Audit of the Financial Statements

• Opinion

  We have audited the financial statements of [XYZ Limited] (the 'company') for the year ended [date] which comprise [specify the titles of the primary statements] and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has

  been applied in their preparation is applicable law and International Financial Reporting Standards

  [lFRSs) as adopted by the European Union.

  In our opinion the financial statements:

  I give a true and fair view of the state of the company's affairs as at [date] and of its
  [profit/loss] for the year then ended;

  I have been properly prepared in accordance with lFRSs as adopted by the European Union;
  and

  n have been prepared in accordance with the requirements of the Companies Act 2006.

• Basis for Opinion

  We conducted our audit in accordance with International Standards on Auditing (UK) (lSAs (UK)) and applicable law. 

  Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. 

  We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the
  financial statements in the UK, including the FRC's Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 

  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

• Conclusions Relating To Going Concern

  We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

  • The directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

  • The directors have not disclosed in the financial statements any identified material uncertainties that may cost significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least 12 months from the date when the financial statements are authorised for issue.

• Key Audit Matters

  Key audit matters are those matters that, in our professional iudgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. 

  These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. [Description of each key audit matter in accordance with ISA (UK)
  701.]

• Our Application Of Materiality

  [Explanation of how the auditor applied the concept of materiality in planning and performing the audit. 

  This is required to include the threshold used by the auditor as being materiality for the financial statements as a whole but may include other relevant disclosures]

• An Overview Of The Scope Of Our Audit

  [Overview of the scope of the audit, including an explanation of how the scope addressed each key audit matter and was influenced by the auditor‘s application of materiality.]

• Other Information

  The directors are responsible for the other information. 

  The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. 

  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

  In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. 

  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 

  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

• Matters On Which We Are Required To Report By Exception

  In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

  We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

  • Adequate accounting records have not been kept, or returns adequate for our audit have not
    been received from branches not visited by us; or

  • The financial statements are not in agreement with the accounting records and returns; or

  • Certain disclosures of directors' remuneration specified by law are not made; or

  • We have not received all the information and explanations we require for our audit.

• Responsibilities of Directors

  As explained more fully in the directors' responsibilities statement [set out on page ...], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

  In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

• Auditor's Responsibilities for the Audit of the Financial Statements

  Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. 

  Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with lSAs (UK) will always detect a material misstatement when it exists.

  Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

  A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: [website link]. 

  This description forms part of our auditor's report.

  [Signature]

  Ivor Bigun (Senior Statutory Auditor)

  For and on behalf of Cow LLP, Statutory Auditor [Auditor Address]

  [Date]