Annual general report of the controller and - Parliament of Tanzania
Annual general report of the controller and - Parliament of Tanzania Annual general report of the controller and - Parliament of Tanzania
An auditor’s opinion is considered an essential tool when reporting financial information to users. It is intended to advise Parliament and other users on whether Public Authorities financial statements have been prepared in accordance with the standards issues by the National Board of Accountants and Auditors being the regulator of the accounting and auditing profession in Tanzania as well as International Financial Reporting Standards issued by the International Accounting Standard Board (IASB) and the International Public Sector Accounting Standards (IPSAS) issued by the International Federation of Accountants (IFAC) 2.1 Types of audit opinion There are five common types of audit opinions, each one presenting a different situation encountered during the auditor’s work. The five opinions are as follows: 2.1.1 Unqualified Opinion report Unqualified Opinion is sometimes regarded by many as equivalent to “Clean opinion”. This type of opinion is issued when the financial statements presented are free of material misstatements and were prepared in accordance with the standards issued by the National Board of Accountants and Auditors (NBAA) or International Financial Reporting Standards issued by the International Accounting Standard Board (IASB), or International Public Sector Accounting Standards (IPSAS) issued by the International Federation of Accountants (IFAC) which in other words means that the Public Authorities financial performance, financial position, change in owners equities and cash flows are fairly presented in the financial statements. It is the best type of opinion an auditee may receive from an external auditor. 2.1.2 Unqualified opinion with Emphasis of Matter In certain circumstances, the unqualified audit opinion may be modified by adding an emphasis of matter paragraph to highlight matters affecting the financial statements. The ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 10
addition of such an emphasis of matter paragraph does not affect the audit opinion. The paragraph is normally included after the opinion paragraph and ordinarily refers to the fact that the opinion is not qualified in this respect. An emphasis of matter paragraph is appended in each situation, which draws the immediate attention of the Chief Executive Officer and users of financial statements warning them about those matters requiring their urgent attention, failure of which may result in issuance of a qualified opinion in subsequent audits. However, the main objective of the emphasis of matter paragraph is to bring closer understanding of the situation obtained in the audited entity, despite the unqualified opinion given. 2.1.3 Qualified Opinion This type of opinion is issued when the Controller and Auditor General disagreed with management or there exists uncertainty which has a material but not fundamental effects on the accuracy of the financial statements. The wording of the qualified opinion is very similar to unqualified opinion, but an explanatory paragraph is added to explain the reasons for the qualification. It will therefore show that financial statements present fairly the state of affairs except for the effects of a specific audit observation. The explanatory paragraph comes before the opinion paragraph. 2.1.4 Adverse Opinion An Adverse Opinion is issued when the Controller and Auditor General determines that the financial statements of Public Authority are materially misstated and, when considered as a whole, do not conform to the standards issued by the National Board of Accountants and Auditors (NBAA) or International Financial Reporting Standards issued by International Accounting Standard Board (IASB). This opinion is considered the opposite of an unqualified opinion, essentially stating that the information contained ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 11
- Page 1 and 2: ANNUAL GENERAL REPORT OF THE CONTRO
- Page 3 and 4: Office of the Controller and Audito
- Page 5 and 6: CHAPTER NINE ......................
- Page 7 and 8: GTEA General Tyre East Africa HRM H
- Page 9 and 10: TR Treasury Registrar TRA Tanzania
- Page 11 and 12: Lastly, I would like to thank staff
- Page 13 and 14: for the maintenance of a compliant
- Page 15 and 16: PA & oBs Unqualified opinion Unqual
- Page 17 and 18: and effective delivery of community
- Page 19 and 20: year 2007/2008 the Office of the Co
- Page 21 and 22: CHAPTER ONE BACKGROUND AND GENERAL
- Page 23 and 24: • Preventing or minimizing the un
- Page 25 and 26: 1.3 Responsibilities of the Board o
- Page 27 and 28: singly or jointly did the audit of
- Page 29: CHAPTER TWO BASIS AND TREND OF AUDI
- Page 33 and 34: General to access all records, book
- Page 35 and 36: It is important to note that an unq
- Page 37 and 38: From the above analysis, it is evid
- Page 39 and 40: 49. National Institute for Producti
- Page 41 and 42: -- The computer hardware and softwa
- Page 43 and 44: epayable after six months. The agre
- Page 45 and 46: 4. Tabora Urban Water Supply and Se
- Page 47 and 48: was carried out by ‘The Solomon C
- Page 49 and 50: 2. PresidentialParastatal Sector Re
- Page 51 and 52: een reconciled by DUWASA and theref
- Page 53 and 54: 4 Tanzania Standard Newspaper (TSN)
- Page 55 and 56: summary total of invoices issued to
- Page 57 and 58: 6. Tanzania Communi cation Regulato
- Page 59 and 60: monthly reports as required by sect
- Page 61 and 62: independently as required by sectio
- Page 63 and 64: TANAPA obtained from the Exim Bank
- Page 65 and 66: 8. Tanzania Post Corporation 9. Ins
- Page 67 and 68: Procurement Notice as required by R
- Page 69 and 70: 11 Muhimbili University of Health a
- Page 71 and 72: Water Supply and Sewarage Authority
- Page 73 and 74: elating to prior years interest cha
- Page 75 and 76: CHAPTER THREE SUMMARY OF THE PREVIO
- Page 77 and 78: 2. 10.2 Weak Information Technology
- Page 79 and 80: eporting directly to the Chief Exec
An auditor’s opinion is considered an essential tool when<br />
<strong>report</strong>ing financial information to users. It is intended to<br />
advise <strong>Parliament</strong> <strong>and</strong> o<strong>the</strong>r users on whe<strong>the</strong>r Public<br />
Authorities financial statements have been prepared in<br />
accordance with <strong>the</strong> st<strong>and</strong>ards issues by <strong>the</strong> National Board<br />
<strong>of</strong> Accountants <strong>and</strong> Auditors being <strong>the</strong> regulator <strong>of</strong> <strong>the</strong><br />
accounting <strong>and</strong> auditing pr<strong>of</strong>ession in <strong>Tanzania</strong> as well as<br />
International Financial Reporting St<strong>and</strong>ards issued by <strong>the</strong><br />
International Accounting St<strong>and</strong>ard Board (IASB) <strong>and</strong> <strong>the</strong><br />
International Public Sector Accounting St<strong>and</strong>ards (IPSAS)<br />
issued by <strong>the</strong> International Federation <strong>of</strong> Accountants<br />
(IFAC)<br />
2.1 Types <strong>of</strong> audit opinion<br />
There are five common types <strong>of</strong> audit opinions, each one<br />
presenting a different situation encountered during <strong>the</strong><br />
auditor’s work. The five opinions are as follows:<br />
2.1.1 Unqualified Opinion <strong>report</strong><br />
Unqualified Opinion is sometimes regarded by many as<br />
equivalent to “Clean opinion”. This type <strong>of</strong> opinion is<br />
issued when <strong>the</strong> financial statements presented are free <strong>of</strong><br />
material misstatements <strong>and</strong> were prepared in accordance<br />
with <strong>the</strong> st<strong>and</strong>ards issued by <strong>the</strong> National Board <strong>of</strong><br />
Accountants <strong>and</strong> Auditors (NBAA) or International Financial<br />
Reporting St<strong>and</strong>ards issued by <strong>the</strong> International Accounting<br />
St<strong>and</strong>ard Board (IASB), or International Public Sector<br />
Accounting St<strong>and</strong>ards (IPSAS) issued by <strong>the</strong> International<br />
Federation <strong>of</strong> Accountants (IFAC) which in o<strong>the</strong>r words<br />
means that <strong>the</strong> Public Authorities financial performance,<br />
financial position, change in owners equities <strong>and</strong> cash flows<br />
are fairly presented in <strong>the</strong> financial statements. It is <strong>the</strong><br />
best type <strong>of</strong> opinion an auditee may receive from an<br />
external auditor.<br />
2.1.2 Unqualified opinion with Emphasis <strong>of</strong> Matter<br />
In certain circumstances, <strong>the</strong> unqualified audit opinion may<br />
be modified by adding an emphasis <strong>of</strong> matter paragraph to<br />
highlight matters affecting <strong>the</strong> financial statements. The<br />
___________________________________________________________<br />
Office <strong>of</strong> <strong>the</strong> Controller <strong>and</strong> Auditor General PA&oBs 2007/08 10
Change language