Guide to Using International Standards on Auditing in - IFAC
Guide to Using International Standards on Auditing in - IFAC
Guide to Using International Standards on Auditing in - IFAC
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<str<strong>on</strong>g>Guide</str<strong>on</strong>g> <str<strong>on</strong>g>to</str<strong>on</strong>g> <str<strong>on</strong>g>Us<strong>in</strong>g</str<strong>on</strong>g> <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Standards</str<strong>on</strong>g> <strong>on</strong> <strong>Audit<strong>in</strong>g</strong> <strong>in</strong> the Audits of Small- and Medium-Sized Entities Volume 1—Core C<strong>on</strong>cepts<br />
Comp<strong>on</strong>ent<br />
Audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s<br />
Signature<br />
Date of Report<br />
Audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s Address<br />
Comments<br />
The audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s signature will be based <strong>on</strong> what is appropriate for the particular<br />
jurisdicti<strong>on</strong>. It could be the firm name, pers<strong>on</strong>al name of the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r, or both. It may<br />
also require the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s professi<strong>on</strong>al accountancy designati<strong>on</strong> or reference <str<strong>on</strong>g>to</str<strong>on</strong>g> the<br />
fact that the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r/firm has been recognized by the appropriate licens<strong>in</strong>g authority.<br />
This is no earlier than the date <strong>on</strong> which the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r obta<strong>in</strong>ed sufficient appropriate<br />
audit evidence <strong>on</strong> which <str<strong>on</strong>g>to</str<strong>on</strong>g> base the op<strong>in</strong>i<strong>on</strong>. This evidence <strong>in</strong>cludes:<br />
• A complete set of f<strong>in</strong>ancial statements has been prepared;<br />
• C<strong>on</strong>siderati<strong>on</strong> of the effect of events and transacti<strong>on</strong>s (of which the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r<br />
became aware) that occurred up <str<strong>on</strong>g>to</str<strong>on</strong>g> that date (refer <str<strong>on</strong>g>to</str<strong>on</strong>g> ISA 560); and<br />
• Asserti<strong>on</strong>s by those with the recognized authority that they have taken<br />
resp<strong>on</strong>sibility for the f<strong>in</strong>ancial statements.<br />
Indicate the name of the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s locati<strong>on</strong> <strong>in</strong> the jurisdicti<strong>on</strong> where the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r<br />
practices.<br />
Unmodified Audit Op<strong>in</strong>i<strong>on</strong>—Fair Presentati<strong>on</strong> Framework<br />
The standard word<strong>in</strong>g for an audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s report (from ISA 700) <strong>on</strong> general purpose f<strong>in</strong>ancial statements,<br />
prepared <strong>in</strong> accordance with a fair presentati<strong>on</strong> framework and express<strong>in</strong>g an unmodified op<strong>in</strong>i<strong>on</strong>, is<br />
illustrated below.<br />
Exhibit 17.4-2<br />
INDEPENDENT AUDITOR’S REPORT<br />
[Appropriate Addressee]<br />
We have audited the accompany<strong>in</strong>g f<strong>in</strong>ancial statements of ABC Company, which comprise the balance<br />
sheet as at December 31, 20X1, and the <strong>in</strong>come statement, statement of changes <strong>in</strong> equity and cashflow<br />
statement for the period then ended, and a summary of significant account<strong>in</strong>g policies and other<br />
explana<str<strong>on</strong>g>to</str<strong>on</strong>g>ry <strong>in</strong>formati<strong>on</strong>.<br />
Management’s Resp<strong>on</strong>sibility for the F<strong>in</strong>ancial Statements<br />
Management is resp<strong>on</strong>sible for the preparati<strong>on</strong> and fair presentati<strong>on</strong> of these f<strong>in</strong>ancial statements<br />
<strong>in</strong> accordance with <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> F<strong>in</strong>ancial Report<strong>in</strong>g <str<strong>on</strong>g>Standards</str<strong>on</strong>g>, and for such <strong>in</strong>ternal c<strong>on</strong>trol as<br />
management determ<strong>in</strong>es is necessary <str<strong>on</strong>g>to</str<strong>on</strong>g> enable the preparati<strong>on</strong> of f<strong>in</strong>ancial statements that are free<br />
from material misstatement, whether due <str<strong>on</strong>g>to</str<strong>on</strong>g> fraud or error.<br />
Audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s Resp<strong>on</strong>sibility<br />
Our resp<strong>on</strong>sibility is <str<strong>on</strong>g>to</str<strong>on</strong>g> express an op<strong>in</strong>i<strong>on</strong> <strong>on</strong> these f<strong>in</strong>ancial statements based <strong>on</strong> our audit. We<br />
c<strong>on</strong>ducted our audit <strong>in</strong> accordance with <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Standards</str<strong>on</strong>g> <strong>on</strong> <strong>Audit<strong>in</strong>g</strong>. Those standards require<br />
that we comply with ethical requirements and plan and perform the audit <str<strong>on</strong>g>to</str<strong>on</strong>g> obta<strong>in</strong> reas<strong>on</strong>able<br />
assurance about whether the f<strong>in</strong>ancial statements are free from material misstatement.