Question

Briefly describe each section of the statements and audit report, how does each section inform the reader? (A NON PROFIT ORGANIZATION)

Answer 1

If the auditor is required by law or regulation to use a specific layout, or wording of the auditor’s report, the auditor’s report shall refer to Standards on Auditing only if the auditor’s report includes, at a minimum, each of the following elements:

a) A title

b) The date of the auditor’s report.

c) An addressee, as required by the circumstances of the engagement.

d) An identification of the entity’s financial statements that have been audited.

e) An Opinion section containing an expression of opinion on the financial statements and a reference to the applicable financial reporting framework used to prepare the financial statements.

f) A statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities in accordance with these requirements.

g) Where applicable, a section that addresses, and is not inconsistent with, the reporting requirements relating to going concern.

h) A description of management’s responsibilities for the preparation of the financial statements and an identification of those responsible for the oversight of the financial reporting process that addresses, and is not inconsistent with, the requirements.

i) Where applicable, a Basis for Qualified (or Adverse) Opinion section that addresses, and is not inconsistent with, the reporting requirements relating to going concern.

j) Where applicable, a section that includes the information required, or additional information about the audit that is prescribed by law or regulation and that addresses, and is not inconsistent with, the reporting requirements.

k) A reference to Standards on Auditing and the law or regulation, and a description of the auditor’s responsibilities for an audit of the financial statements that addresses, and is not inconsistent with, the requirements.

l) The Place of signature

m) The auditor’s signature.