Sample Audit Reports
Sample Audit Reports
Sample Audit Reports
April 2006
Introduction 4
2
Example 12 – Unqualified opinion. Emphasis of matter. Material
Uncertainty about the Company’s ability to continue
As a going concern 33
3
Introduction
In January 2006, the Auditing Practices Board issued APB Bulletin 2006/1 “Auditor’s
Reports on Financial Statements in the Republic of Ireland”. This information leaflet
has been produced to assist practicing members with audit reports for non-publicly
traded companies.
In addition to the sample auditor reports on the APB Bulletin 2006/1 we have also
included a standard unqualified auditor report for abridged financial statements
(Example 5) and an audit report where the exemptions under the Ethical Standards
“Provisions Available for Small Entities” are availed of (Example 2).
4
SECTION 1
5
Example 1 – Non-publicly traded company incorporated in the Republic of
Ireland – Auditor’s report on individual company financial statements
We have audited the financial statements of XXX Limited for the year ended
………..which comprise (state the primary financial statements such as the Profit and
Loss Account, the Balance Sheet, (cash flow statement), the Statement of Total
Recognised Gains and Losses) and the related notes. These financial statements
have been prepared under the accounting policies set out therein.
This report is made solely to the company's members as a body in accordance with
the requirements of the Companies Acts 1963 to 2005. Our audit work has been
undertaken so that we might state to the company's members those matters that we
are required to state to them in the audit report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company or the company’s members as a body for our audit work, for
this report, or for the opinions we have formed.
We report to you our opinion as to whether the financial statements give a true and
fair view in accordance with Generally Accepted Accounting Practice in Ireland and
are properly prepared in accordance with the Companies Acts 1963 to 2005. We also
report to you whether in our opinion: proper books of account have been kept by the
company; whether, at the balance sheet date, there exists a financial situation
requiring the convening of an extraordinary general meeting of the company; and
whether the information given in the Directors’ Report is consistent with the financial
statements. In addition, we state whether we have obtained all the information and
explanations necessary for the purposes of our audit and whether the company’s
Balance Sheet and its Profit and Loss Account are in agreement with the books of
account.
6
We report to the shareholders if, in our opinion, any information specified by law
regarding directors’ remuneration and directors’ transactions is not disclosed, and
where practicable, include such information in our report.
We read the Directors’ Report and consider the implications for our report if we
become aware of any apparent misstatement within it.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
OPINION
In our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at………….. and of its profit/(loss) for the year then ended and have been
properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
7
Example 2 – Non-publicly traded company incorporated in the Republic of
Ireland – Auditor’s report on individual company financial statements
We have audited the financial statements of XXX Limited for the year ended
………..which comprise (state the primary financial statements such as the Profit and
Loss Account, the Balance Sheet, (cash flow statement), the Statement of Total
Recognised Gains and Losses) and the related notes. These financial statements
have been prepared under the accounting policies set out therein.
This report is made solely to the company's members as a body in accordance with
the requirements of the Companies Acts 1963 to 2005. Our audit work has been
undertaken so that we might state to the company's members those matters that we
are required to state to them in the audit report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company or the company’s members as a body for our audit work, for
this report, or for the opinions we have formed.
We report to you our opinion as to whether the financial statements give a true and
fair view in accordance with Generally Accepted Accounting Practice in Ireland and
are properly prepared in accordance with the Companies Acts 1963 to 2005. We also
report to you whether in our opinion: proper books of account have been kept by the
company; whether, at the balance sheet date, there exists a financial situation
requiring the convening of an extraordinary general meeting of the company; and
whether the information given in the Directors’ Report is consistent with the financial
statements. In addition, we state whether we have obtained all the information and
explanations necessary for the purposes of our audit and whether the company’s
Balance Sheet and its Profit and Loss Account are in agreement with the books of
account.
8
We report to the shareholders if, in our opinion, any information specified by law
regarding directors’ remuneration and directors’ transactions is not disclosed, and
where practicable, include such information in our report.
We read the Directors’ Report and consider the implications for our report if we
become aware of any apparent misstatement within it.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
We have undertaken the audit in accordance with the requirements of the APB
Ethical Standards – Provisions Available for Small Entities, in the
circumstances set out in note X to the financial statements. *(Disclose in the
notes to the financial statements the type of non-audit services provided to the audit
client or the fact that a former engagement partner has joined the client)
OPINION
In our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at………….. and of its profit/(loss) for the year then ended and have been
properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
9
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
10
Example 3 – Non-publicly traded company incorporated in the Republic of
Ireland – Auditor’s report on individual company financial statements
We have audited the financial statements of XXX Limited for the year ended
………..which comprise (state the primary financial statements such as the Profit and
Loss Account, the Balance Sheet, (cash flow statement), the Statement of Total
Recognised Gains and Losses) and the related notes. These financial statements
have been prepared under the accounting policies set out therein.
This report is made solely to the company's members as a body in accordance with
the requirements of the Companies Acts 1963 to 2005. Our audit work has been
undertaken so that we might state to the company's members those matters that we
are required to state to them in the audit report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company or the company’s members as a body for our audit work, for
this report, or for the opinions we have formed.
The Directors’ Responsibilities for preparing the Annual Report and the financial
statements in accordance with applicable law and the accounting standards issued
by the Accounting Standards Board are set out in the Statement of Directors’
Responsibilities.
We report to you our opinion as to whether the financial statements give a true and
fair view in accordance with Generally Accepted Accounting Practice in Ireland and
are properly prepared in accordance with the Companies Acts 1963 to 2005. We
also report to you whether in our opinion: proper books of account have been kept by
the company; whether, at the balance sheet date, there exists a financial situation
requiring the convening of an extraordinary general meeting of the company; and
whether the information given in the Directors’ Report is consistent with the financial
statements. In addition, we state whether we have obtained all the information and
explanations necessary for the purposes of our audit and whether the company’s
Balance Sheet and its Profit and Loss Account are in agreement with the books of
account.
11
We report to the shareholders if, in our opinion, any information specified by law
regarding directors’ remuneration and directors’ transactions is not disclosed, and
where practicable, include such information in our report.
We read the other information contained in the Annual Report, and consider whether
it is consistent with the audited financial statements. This other information comprises
only (the Directors’ Report and the Chairman’s Statement and the Operating and
Financial Review). We consider the implications for our report if we become aware of
any apparent misstatement or material inconsistencies with the financial statements.
Our responsibilities do not extend to any other information.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
OPINION
In our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at………….. and of its profit/(loss) for the year then ended and have been
properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
12
Example 4 – Non-publicly traded company incorporated in the Republic of
Ireland – Auditor’s report on group and Parent company financial statements
We have audited the group and parent company financial statements of XXX Limited
for the year ended ………..which comprise (state the primary financial statements
such as the Group Profit and Loss Account, the Group and Company Balance
Sheets, the Group Cash Flow Statement, the Group Statement of Total Recognised
Gains and Losses) and the related notes. These financial statements have been
prepared under the accounting policies set out therein.
This report is made solely to the company's members as a body in accordance with
the requirements of the Companies Acts 1963 to 2005. Our audit work has been
undertaken so that we might state to the company's members those matters that we
are required to state to them in the audit report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company or the company’s members as a body for our audit work, for
this report, or for the opinions we have formed.
The Directors’ Responsibilities for preparing the Annual Report and the financial
statements in accordance with applicable law and the accounting standards issued
by the Accounting Standards Board are set out in the Statement of Directors’
Responsibilities.
We report to you our opinion as to whether the financial statements give a true and
fair view in accordance with Generally Accepted Accounting Practice in Ireland and
are properly prepared in accordance with the Companies Acts 1963 to 2005 and the
European Communities (Companies: Group Accounts) Regulations 1992. We also
report to you whether in our opinion: proper books of account have been kept by the
company; whether, at the balance sheet date, there exists a financial situation
requiring the convening of an extraordinary general meeting of the company; and
whether the information given in the Directors’ Report is consistent with the financial
statements. In addition, we state whether we have obtained all the information and
explanations necessary for the purposes of our audit and whether the company’s
Balance Sheet and its Profit and Loss Account are in agreement with the books of
account.
13
We report to the shareholders if, in our opinion, any information specified by law
regarding directors’ remuneration and directors’ transactions is not disclosed, and
where practicable, include such information in our report.
We read the other information contained in the Annual Report, and consider whether
it is consistent with the audited financial statements. This other information comprises
only (the Directors’ Report and the Chairman’s Statement and the Operating and
Financial Review). We consider the implications for our report if we become aware of
any apparent misstatement or material inconsistencies with the financial statements.
Our responsibilities do not extend to any other information.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
OPINION
In our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the group’s and
company’s affairs as at………….. and of the group’s profit/(loss) for the year then
ended and have been properly prepared in accordance with the Companies Acts
1963 to 2005 and the European Communities (Companies: Group Accounts)
Regulations, 1992.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
14
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
15
Example 5 – Non-publicly traded company incorporated in the Republic of
Ireland – Auditor’s report on Abridged Financial Statements
We have examined:
(i) the abridged financial statements for the year ended ……….. on pages
…. to….which the director’s of XXX Limited propose to annex to the
annual return of the company; and
(ii) the financial statements to be laid before the Annual General Meeting,
which form the basis for those abridged financial statements.
Basis of opinion
The scope of our work for the purpose of this report was limited to confirming that the
directors are entitled to annex abridged financial statements to the annual return and
that those abridged financial statements have been properly prepared, pursuant to
Sections 10 to 12 of the Companies (Amendment) Act 1986, from the financial
statements to be laid before the Annual General Meeting. The scope of our work for
the purpose of this report does not include examining or dealing with events after the
date of our report on the full financial statements.
Opinion
In our opinion the directors are entitled under Section 18 of the Companies
(Amendment) Act 1986 to annex to the annual return of the company abridged
financial statements and those abridged financial statements have been properly
prepared pursuant to the provisions of Sections 10 to 12 of that Act (exemptions
available to small and medium-sized companies)*
Date
*Where, in the auditors’ opinion, the abridgement process has impaired the true and
fair view given by the financial statements to be laid before the Annual General
Meeting the following additional paragraph should be included.
16
“In our opinion the abridged financial statements do not give a true and fair view
because ….(outlining the auditors’ reservations).
We have examined:
(i) the abridged financial statements for the year ended ……….. on pages
…. to….which the director’s of XXX Limited propose to annex to the
annual return of the company; and
(ii) the financial statements to be laid before the Annual General Meeting,
which form the basis for those abridged financial statements.
Basis of opinion
The scope of our work for the purpose of this report was limited to confirming that the
directors are entitled to annex abridged financial statements to the annual return and
that those abridged financial statements have been properly prepared, pursuant to
Sections 10 to 12 of the Companies (Amendment) Act 1986, from the financial
statements to be laid before the Annual General Meeting. The scope of our work for
the purpose of this report does not include examining or dealing with events after the
date of our report on the full financial statements.
Opinion
In our opinion the directors are entitled under Section 18 of the Companies
(Amendment) Act 1986 to annex to the annual return of the company abridged
financial statements and those abridged financial statements have been properly
prepared pursuant to the provisions of Sections 10 to 12 of that Act (exemptions
available to small and medium-sized companies).
Other information
“We have audited the financial statements of XXX Limited for the year ended
………..which comprise (state the primary financial statements such as the Profit and
Loss Account, the Balance Sheet, (cash flow statement), the Statement of Total
Recognised Gains and Losses) and the related notes. These financial statements
have been prepared under the accounting policies set out therein.
17
This report is made solely to the company's members as a body in accordance with
the requirements of the Companies Acts 1963 to 2005. Our audit work has been
undertaken so that we might state to the company's members those matters that we
are required to state to them in the audit report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company or the company’s members as a body for our audit work, for
this report, or for the opinions we have formed.
We report to you our opinion as to whether the financial statements give a true and
fair view in accordance with Generally Accepted Accounting Practice in Ireland and
are properly prepared in accordance with the Companies Acts 1963 to 2005. We also
report to you whether in our opinion: proper books of account have been kept by the
company; whether, at the balance sheet date, there exists a financial situation
requiring the convening of an extraordinary general meeting of the company; and
whether the information given in the Directors’ Report is consistent with the financial
statements. In addition, we state whether we have obtained all the information and
explanations necessary for the purposes of our audit and whether the company’s
Balance Sheet and its Profit and Loss Account are in agreement with the books of
account.
We report to the shareholders if, in our opinion, any information specified by law
regarding directors’ remuneration and directors’ transactions is not disclosed, and
where practicable, include such information in our report.
We read the Directors’ Report and consider the implications for our report if we
become aware of any apparent misstatement within it.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
18
OPINION
In our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at………….. and of its profit/(loss) for the year then ended and have been
properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company”.
Date
19
SECTION 2
• Examples of reports where the matter does not affect the auditor’s
opinion for example, emphasis of matter paragraphs; and
• Example of reports where the matter does affect the auditor’s opinion
for example;
o Qualified opinions
o Disclaimers of opinion
o Adverse opinions
20
Example 6 – Unqualified opinion- Emphasis of matter. Possible outcome of a
lawsuit, unable to quantify effect on financial statements.
We have audited the financial statements of XXX Limited for the year ended
………..which comprise (state the primary financial statements such as the Profit and
Loss Account, the Balance Sheet, (cash flow statement), the Statement of Total
Recognised Gains and Losses) and the related notes. These financial statements
have been prepared under the accounting policies set out therein.
This report is made solely to the company's members as a body in accordance with
the requirements of the Companies Acts 1963 to 2005. Our audit work has been
undertaken so that we might state to the company's members those matters that we
are required to state to them in the audit report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company or the company’s members as a body for our audit work, for
this report, or for the opinions we have formed.
We report to you our opinion as to whether the financial statements give a true and
fair view in accordance with Generally Accepted Accounting Practice in Ireland and
are properly prepared in accordance with the Companies Acts 1963 to 2005. We also
report to you whether in our opinion: proper books of account have been kept by the
21
company; whether, at the balance sheet date, there exists a financial situation
requiring the convening of an extraordinary general meeting of the company; and
whether the information given in the Directors’ Report is consistent with the financial
statements. In addition, we state whether we have obtained all the information and
explanations necessary for the purposes of our audit and whether the company’s
Balance Sheet and its Profit and Loss Account are in agreement with the books of
account.
We report to the shareholders if, in our opinion, any information specified by law
regarding directors’ remuneration and directors’ transactions is not disclosed, and
where practicable, include such information in our report.
We read the Directors’ Report and consider the implications for our report if we
become aware of any apparent misstatement within it.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
OPINION
In our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at………….. and of its profit/(loss) for the year then ended and have been
properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
22
concerning the possible outcome of a lawsuit, alleging infringement of certain
patent rights and claiming royalties and punitive damages, where the company
is the defendant. The company has filed a counter action, and preliminary
hearings and discovery proceedings on both actions are in progress. The
ultimate outcome of the matter cannot presently be determined, and no
provision for any liability that may result has been made in the financial
statements.
Date
23
Example 7 – Qualified opinion- Disagreement, inappropriate accounting
treatment of debtors.
Except for the financial effect of not making the provision referred to in the
preceding paragraph, In our opinion the financial statements give a true and fair
view, in accordance with Generally Accepted Accounting Practice in Ireland, of the
state of the company’s affairs as at………….. and of its profit/(loss) for the year then
ended and have been properly prepared in accordance with the Companies Acts
1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
24
Example 8 – Qualified opinion- Disagreement, prior period qualification
unresolved and results in a modification of the auditor’s report regarding the
current period figures.
Included in the debtors shown on the balance sheets of 31 December 20x4 and
31 December 20x5 is an amount of €y which is the subject of litigation and
against which no provision has been made. In our opinion, full provision of €y
should have been in the year ended 31 December 20x4. Accordingly, debtors at
31 December 20x4 and 20x5 should be reduced by €y, deferred income taxes at
31 December 20x4 and 20x5 should be reduced by €x, and the profit for the
year ended 31 December 20x4 and the retained earnings at 31 December 20x4
and 20x5 should be reduced by €z.
In our opinion the financial statements give a true and fair view, in accordance
with Generally Accepted Accounting Practice in Ireland, of the company’s
profit(loss) for the year ended 31 December 20x5
Except for the financial effect of not making the provision referred to in the
preceding paragraph, In our opinion the financial statements give a true and fair
view, in accordance with Generally Accepted Accounting Practice in Ireland, of the
state of the company’s affairs as at 31 December 20x5 and have been properly
prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at …………… a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
25
Example 9 – Qualified opinion- Limitation on scope. Auditor not appointed at
the time of the stock take.
We planned our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error. However, with
respect to stock having a carry amount of €x the evidence available to us was
limited because we did not observe the counting of the physical stock as of 31
December 20x1, since that date was prior to our appointment as auditors of the
company. Owing to the nature of the company’s records, we were unable to
obtain sufficient appropriate audit evidence regarding the stock quantities by
using other audit procedures.
In forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
Except for the financial effects if such adjustments, if any, as might have been
determined to be necessary had we been able to satisfy ourselves as to
physical stock quantities, In our opinion the financial statements give a true and
fair view, in accordance with Generally Accepted Accounting Practice in Ireland, of
the state of the company’s affairs as at 31 December 20x1and of its profit/(loss) for
the year then ended and have been properly prepared in accordance with the
Companies Acts 1963 to 2005.
26
• We have not obtained all the information and explanations that we
considered necessary for our audit; and
• We were unable to determine whether proper accounting records had
been maintained.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
27
Example 10 – Disclaimer of opinion. Unable to observe all physical stock and
confirm trade debtors
We planned our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error. However, the
evidence available to us was limited because we were unable to observe the
counting of physical stock having a carrying amount of €x and send
confirmation letters to trade debtors having a carrying amount of €y due to
limitations placed on the scope of our work by the company. As a result of this
we have been unable to obtain sufficient appropriate audit evidence
concerning both stock and trade debtors. Because of the significance of these
items, we have been unable to form a view on the financial statements.
In forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
Whether there did or did not exist at …… a financial situation under Section
40(1) of the Companies (Amendment) Act, 1983 would require the convening of
an extraordinary general meeting of the company
28
• We have not obtained all the information and explanations that we
considered necessary for our audit; and
• We were unable to determine whether proper books of account have
been kept by the company.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
Date
29
Example 11 – Adverse opinion. No provision made for losses expected to arise
on certain long term contracts
ADVERSE OPINION
In view of the effect of the failure to provide for the losses referred to above, in
our opinion the financial statements DO NOT give a true and fair view, in accordance
with Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at 31 December 20x1 and of its profit/(loss) for the year then ended.
In all other respects, in our opinion the financial statements have been properly
prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations which we consider necessary
for the purposes of our audit. In our opinion proper books of account have been kept
by the company. The financial statements are in agreement with the books of
account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
30
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
31
SECTION 3
32
Example 12 – Unqualified opinion- Emphasis of matter. Material uncertainty
about the Company’s ability to continue as a going concern.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
OPINION
In our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at 31 December 20x1 and of its profit/(loss) for the year then ended and
have been properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1 a financial situation which, under section 40(1) of the
33
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
34
Example 13 – Qualified opinion – Disagreement. Irish GAAP financial
statements where the going concern period considered by directors does not
comply with FRS 18 but is disclosed.
Except for the absence of the disclosure referred to above in our opinion the
financial statements give a true and fair view, in accordance with Generally Accepted
Accounting Practice in Ireland, of the state of the company’s affairs as at 31
December 20x1 and of its profit/(loss) for the year then ended and have been
properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
35
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1 a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
36
Example 14 – Qualified opinion – Disagreement. Non-disclosure of going
concern problems.
Except for the omission of the information included in the preceding paragraph
in our opinion the financial statements give a true and fair view, in accordance with
Generally Accepted Accounting Practice in Ireland, of the state of the company’s
affairs as at 31 December 20x1 and of its profit/(loss) for the year then ended and
have been properly prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations we consider necessary for the
purpose of our audit. In our opinion, proper books of account have been kept by the
company. The financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
37
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1 a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
38
Example 15 – Qualified opinion- Limitation of scope. Evidence available to
auditor regarding going concern status was limited because cash flow
forecasts were only prepared for a period of nine months from approval of
financial statements.
We planned our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error. However, the
evidence available to us was limited because the company has prepared cash
flow forecasts and other information needed for the assessment of the
appropriateness of the going concern basis of preparation of the financial
statements for a period of only nine months from the date of approval of these
financial statements. We consider that the directors have not taken adequate
steps to satisfy themselves that it is appropriate for them to adopt the going
concern basis because the circumstances of the company and the nature of
the business require that such information be prepared, and reviewed by the
39
directors and ourselves, for a period of at least twelve months from the date of
approval of the financial statements. Had this information been available to us
we might have formed a different opinion.
In forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
Except for any adjustment that might have been found to be necessary had we
been able to obtain sufficient evidence concerning the appropriateness of the
going concern basis of preparation of the financial statements, in our opinion
the financial statements give a true and fair view, in accordance with Generally
Accepted Accounting Practice in Ireland, of the state of the company’s affairs as at
31 December 20x1 and of its profit/(loss) for the year then ended and have been
properly prepared in accordance with the Companies Acts 1963 to 2005.
In respect solely of the limitation on our work relating to the assessment of the
appropriateness of the going concern basis of preparation of the financial
statements we have not obtained all the information and explanations that we
considered necessary for the purpose of our audit.
In our opinion, proper books of account have been kept by the company. The
financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1 a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
40
Example 16 – Disclaimer of opinion. Going concern – company has not
prepared profit or cash flow projections for an appropriate period subsequent
to the balance sheet date.
We planned our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error. However, the
evidence available to us to confirm the appropriateness of preparing the
financial statements on the going concern basis was limited because the
company has not prepared any profit or cash flow projections for an
appropriate period subsequent to the balance sheet date. As a result, and in
the absence of any alternative evidence available to us, we have been unable
to form a view as to the applicability of the going concern basis, the
circumstances of which, together with the effect on the financial statements
should this basis be inappropriate, are set out in note x to the financial
statements.
In forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements.
41
OPINION: DISCLAIMER ON VIEW GIVEN BY THE FINANCIAL STATEMENTS
In respect solely of the limitation on our work referred to above we have not
obtained all the information and explanations that we considered necessary for
the purpose of our audit.
In our opinion, proper books of account have been kept by the company. The
financial statements are in agreement with the books of account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1 a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
42
Example 17 – Adverse opinion. Significant level of concern about the
company’s ability to continue as a going concern that is not disclosed in the
financial statements
ADVERSE OPINION
In our opinion, because of the omission of the information mentioned above, the
financial statements do not give a true and fair view, in accordance with Generally
Accepted Accounting Practice in Ireland, of the state of the company’s affairs as at
31 December 20x1 and of its profit/(loss) for the year then ended.
In all other respects, in our opinion the financial statements have been properly
prepared in accordance with the Companies Acts 1963 to 2005.
We have obtained all the information and explanations which we consider necessary
for the purposes of our audit. In our opinion, proper books of account have been kept
by the company. The financial statements are in agreement with the books of
account.
In our opinion, the information given in the Directors’ Report is consistent with the
financial statements.
43
The net assets of the company, as stated in the balance sheet are more than half of
the amount of its called up share capital and, in our opinion, on that basis there did
not exist at 31 December 20x1 a financial situation which, under section 40(1) of the
Companies (Amendment) Act 1983, would require the convening of an extraordinary
general meeting of the company.
Date
44