Annual general report of the controller and - Parliament of Tanzania

The above table guides the formation of audit opinion, its
interpretation is shown below:-
(i) Where audit findings constitute disagreement and
• the matter is material but not fundamental, the
opinion is qualified (Except for)
• the matter is material and fundamental, the
opinion is adverse
(ii) Where audit findings constitute Uncertainty and
• the uncertainty is material but not
fundamental, the opinion is qualified (Except
for)
• the uncertainty is material and fundamental,
disclaimer of opinion is expressed.
NAO’s objective is to produce reports that present a
balanced perspective, place primary emphasis on critical
matters requiring attention, and identify workable
opportunities for improvements.
In accordance with auditing standards, audit reports will
generally provide reasonable, but not absolute, assurance.
In relation to the opinion given against the audit
objectives, a reasonable level of assurance is provided by
designing procedures so that the auditor’s professional
judgment, the risk of an inappropriate conclusion is
reduced to a low level through procedures such as
inspection, observation, enquiry, confirmation,
computation, analysis, discussion and effective quality
review procedures.
Absolute assurance is not attainable as a result of factors
such as limitations on the use of testing, inherent
limitations of the internal controls in the Public Authority
and the fact that much of the evidence available to the
auditors is persuasive rather than conclusive in nature. The
level of assurance will, to some extent, also be influenced
by the degree of precision associated with the subject
matter itself.
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Office of the Controller and Auditor General PA&oBs 2007/08 14