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Trainers Training on PPSSA Session 4.2

PPSSA 1700 Forming an Opinion and Reporting on FinancialStatements

SESSION 4.2SESSION 4.2

Forming an Opinion andForming an Opinion and

Reporting on FinancialReporting on Financial

StatementsStatements

Slide 4.2.1

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Auditors Report on

Financial Statements

Forming an

Opinion on

F/S

PPSSA 1700

Modifications

to Opinion in

the IAR

PPSSA 1705

Emphasis of

Matter and

Other Matters

in the IARPPSSA1706

Comparative

and

Corresponding

FinancialStatements

PPSSA 1710

Slide 4.2.2

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Trainers Training on PPSSA Session 4.12 PPSSA 1700 Formingan Opinion and Reporting on Financial Statements

PPSSA 1700PPSSA 1700

Forming an Opinion andForming an Opinion andReporting on FinancialReporting on FinancialStatementsStatements

Slide 4.2.3

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EFFECTIVITY:EFFECTIVITY:

ISA 700 December 15, 2009

PPSSA 1700 January 29, 201!C"A #e$%&u'(%n )%* 201+007a'e January 29, 201-

4


PPSSA 1700 Forming an Opinion and Reporting on FinancialStatements Slide 4.1.4

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Trainers Training on PPSSA Session 4.2PPSSA 1700 Forming an Opinion and Reporting on Financial

Statements Slide 4.1.5

Forming an Opinion and Reportingon F/S

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THE AUITOR!S REPORT ONTHE AUITOR!S REPORT ON

FINAN"IA# STATE$ENTSFINAN"IA# STATE$ENTS

PPSSA 1700 requires the auditor to:

a$$e$$ ./e'/er %&'(ient appropriatea&dit e)iden(e *a% +een o+tained '%

r%(e rea$%nab&e a$$urance '/a' '/enanc(a& $'a'emen'$ 'a3en a$ a ./%&e are4ree 4r%m ma'er(a& m($$'a'emen'$ an

ea&ua'e ./e'/er '/e ,nan(ia-

%tatement% (onorm it* t*eapp-i(a+-e general purpose reportingframework.


StatementsSlide 4.1.6

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THE AUITOR!S REPORT ONTHE AUITOR!S REPORT ON

FINAN"IA# STATE$ENTSFINAN"IA# STATE$ENTS

General Purpose Reporting Framework

A nanc(a& re%r'(n 4rame.%r3e$(ne '% mee' '/e c%mm%nnanc(a& (n4%rma'(%n nee$ %4 a .(erane %4 u$er$*

T/e nanc(a& re%r'(n 4rame.%r3

may be a 4a(r re$en'a'(%n4rame.%r3 %r a c%m&(ance4rame.%r3*


StatementsSlide 4.1.7

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Trainers Training on PPSSA Session 4.1 PPSSA 1710

Comparatie !n"ormation Corresponding "ig#res and comparatie"inancial statements. 03/17/15

Two types of General Purpose ReportingTwo types of General Purpose Reporting

FrameworFramewor

Frameor e%(ription

FairPre%entation

Frameor

A nanc(a& re%r'(n 4rame.%r3 '/a' re6u(re$c%m&(ance .('/ '/e re6u(remen'$ %4 '/e4rame.%r3*

In'erna'(%na& F(nanc(a& #e%r'(n S'anar$!IF#S-, %r

In'erna'(%na& Pub&(c Sec'%r Acc%un'(nS'anar$ !IPSAS-

T/e au('%r re%r'$ %n ./e'/er the nancialstatements present fairly, in allmaterial respects or give a true andfair view of '/e (n4%rma'(%n '/a' '/enanc(a& $'a'emen'$ are e$(ne '% re$en'*

Slide 4.2.8

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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on t$e Financial Statements 03/17/15

Two types of General Purpose ReportingTwo types of General Purpose Reporting

FrameworFramewor

Frameor e%(ription

"omp-ian(eFrameor

A nanc(a& re%r'(n 4rame.%r3 '/a' re6u(re$c%m&(ance .('/ '/e re6u(remen'$ %4 '/e4rame.%r3, bu' %e$ n%' c%n'a(n '/e

ac3n%.&eemen'$ 4%r 4a(r8 re$en'a'(%n*An eam&e .%u& be a nanc(a& re%r'(n4rame.%r3 $'(u&a'e by a &a. %r reu&a'(%n'/a' ($ e$(ne '% mee' '/e nanc(a&(n4%rma'(%n nee$ %4 a .(e rane %4 u$er$*

T/e au('%r re%r'$ %n ./e'/er thenancial statements are prepared, inall material respects, in accordancewith, urisdiction ! "orporations

#ct. Slide 4.2.9

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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial Statements 03/17/15

Forming an !pinion " #onsi$erationsForming an !pinion " #onsi$erations

"on%ideration%

$ateria-it

C%nc&ue ./e'/er:

a'er(a&('y rema(n$ ar%r(a'e (n

'/e c%n'e' %4 '/e en'('y;$ ac'ua&nanc(a& re$u&'$*

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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial Statements 03/17/15


"on%ideration%

A&ditE)iden(e

=a$ $u>c(en' ar%r(a'e au('e(ence been %b'a(ne?

@ Are '/e acc%un'(n e$'(ma'e$ maeby manaemen' rea$%nab&e?

@ D( '/e ana&y'(ca& r%ceure$er4%rme a' %r near '/e en %4 '/eau(' c%rr%b%ra'e c%nc&u$(%n$ 4%rmeur(n '/e au('?

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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial statements. 03/17/15


"on%ideration%

Finan(ia-Statemen

t%i%(-o%&re%

D% '/e nanc(a& $'a'emen'$ re4er '% %re$cr(be '/e a&(cab&e re%r'(n4rame.%r3?

=ae a&& nanc(a& $'a'emen' ($c&%$ure$been mae a$ re6u(re by '/e a&(cab&enanc(a& re%r'(n 4rame.%r3?I$ '/e 'erm(n%&%y u$e (n '/e nanc(a&$'a'emen'$, (nc&u(n '/e '('&e %4 eac/nanc(a& $'a'emen', ar%r(a'e?Are '/ere ae6ua'e ($c&%$ure$ '% enab&e(n'ene u$er$ '% uner$'an '/e eec' %4ma'er(a& 'ran$ac'(%n$ an een'$ %n '/e(n4%rma'(%n c%neye (n '/e nanc(a&$'a'emen'$?

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"on%ideration%

FairPre%entation/

"omp-ian(eFrameor%

D% '/e %era&& re$en'a'(%n,$'ruc'ure, an c%n'en' !(nc&u(n'/e n%'e ($c&%$ure$- 4a('/4u&&y

rere$en' '/e uner&y(n'ran$ac'(%n$ an een'$ (nacc%rance .('/ '/e a&(cab&enanc(a& re%r'(n 4rame.%r3? I4n%', ($ '/ere a nee '% r%(e

($c&%$ure$ bey%n '/%$e$ec(ca&&y re6u(re by '/e4rame.%r3 '% en$ure 4a(rre$en'a'(%n?

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"on%ideration%

FairPre%entation/

"omp-ian(eFrameor%

Are '/e nanc(a& $'a'emen'$reare (n acc%rance .('/ '/ec%m&(ance 4rame.%r3?

Are '/e nanc(a& $'a'emen'$, a4'erany aBu$'men'$ mae bymanaemen' a$ a re$u&' %4 '/e au('r%ce$$, c%n$($'en' .('/ '/e

uner$'an(n %b'a(ne ab%u' '/een'('y an ('$ en(r%nmen'?

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Statements Slide 4.217

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Statements

a%i( e-ement% o t*e a&ditor!%a%i( e-ement% o t*e a&ditor!%

Standard ReportStandard Report

1* T('&e

2* Are$$ee

* In'r%uc'%ry Parara/

* anaemen';$ #e$%n$(b(&('y5* Au('%r;$ #e$%n$(b(&('y

* Au('%r;$ "(n(%n

7* "'/er #e%r'(n #e$%n$(b(&('(e$

* Au('%r;$ S(na'ure9* Da'e

10*Au('%r;$ Are$$

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Statements

a%i( e-ement% o t*ea%i( e-ement% o t*e

a&ditor!% Standard Reporta&ditor!% Standard Report

$. %itle

T/e '('&e %4 '/e re%r' $/%u& c&ear&y (n(ca'e '/a' ('($

'/e report o an independent a&ditor* T/($ ($%ne (n

%rer '%:

'% em/a$(e '/e independen(e%4 '/e au('%r

.('/ re$ec' '% '/e c&(en' uner au('G an '% ($'(nu($/ '/e au('%r;$ re%r' 4r%m '/e

re%r'$ '/a' m(/' be ($$ue by %'/er$*

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Statements



&. #ddressee

T/e re%r' $/%u& be are$$e '%

'/%$e partie% or *om t*e reporti% prepared* "r(nar(&y '/e re%r' ($are$$e '% '/e $/are/%&er$, b%ar

%4 (rec'%r$, HCE %r a '/(r ar'yre6ue$'(n '/e au('*

Slide 4.1.20

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Statements


Standard Unmodi,ed ReportStandard Unmodi,ed Report

'. (ntroductory paragraph

T/e (n'r%uc'%ry arara/ $/%u&

(en'(4y '/e name %4 '/e en'('y ./%$e nanc(a&$'a'emen'$ /ae been au('e

$'a'e '/a' '/e nanc(a& $'a'emen'$ /ae beenau('e

(en'(4y '/e '('&e %4 eac/ $'a'emen' '/a'c%mr($e$ '/e nanc(a& $'a'emen'$

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Statements


Standard Unmodi,ed ReportStandard Unmodi,ed Report(ntroductory )aragraph

re4er '% '/e $ummary %4 $(n(can'acc%un'(n %&(c(e$ an %'/ere&ana'%ry (n4%rma'(%n

$ec(4y '/e a'e %r er(% c%ere byeac/ nanc(a& $'a'emen'

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Statements


Standard d ReportStandard d Report

*. +anagements responsi-ility

T/e re%r' $/%u& $'a'e '/a' '/e manaemen'

($ re$%n$(b&e 4%r '/e reara'(%n an 4a(rre$en'a'(%n %4 '/e nanc(a& $'a'emen'$

(n acc%rance .('/ '/e a&(cab&e F#F 4%r $uc/ (n'erna& c%n'r%& a$ (' e'erm(ne$ ($

nece$$ary '% enab&e '/e reara'(%n %4

nanc(a& $'a'emen'$ '/a' are 4ree 4r%mma'er(a& m($$'a'emen', ./e'/er ue '% 4rau%r err%r*

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Statements



. #uditors responsi-ility

$'a'e '/a' '/e re$%n$(b(&('y %4 '/e au('%r ($ '%ere$$ an %(n(%n %n '/e nanc(a& $'a'emen'$

ba$e %n '/e au(' $'a'e '/a' '/e au(' .a$ c%nuc'e (nacc%rance .('/ P/(&((ne Pub&(c Sec'%rS'anar$ %n Au('(n !PPSSA-

(e a enera& e$cr('(%n %4 an au('c%nuc'e

$'a'e '/a' '/e au('%r be&(ee$ '/a' '/e au('e(ence %b'a(ne ($ $u>c(en' anar%r(a'e '% r%(e a ba$($ 4%r '/e au('%r;$%(n(%n*

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Statements



/. #uditors opinion

T/e au('%r;$ re%r' $/a&& $'a'e '/a' '/enanc(a& $'a'emen'$ are pre%entedair-!or give a true and fair view (n a&&ma'er(a& re$ec'$ (n acc%rance .('/ '/ea&(cab&e nanc(a& re%r'(n 4rame.%r3

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Statements



0. Other reporting responsi-ilities

Cer'a(n $'anar$, &a.$, %r enera&&y acce'erac'(ce (n a Bur($(c'(%n may re6u(re %r erm(' '/e

au('%r '% re%r' %n %'/er re$%n$(b(&('(e$* Suc/ma''er$ .%u& be are$$e (n a $eara'earara/ 4%&&%.(n '/e au('%r;$ %(n(%n*

re%r' .('/(n a $eara'e $ec'(%n (n '/e au('%r;$re%r' !e**, uner a ne. $ub/ea(n $uc/ a$

#e%r' %n "'/er Hea& an #eu&a'%ry#e6u(remen'$8-*

+

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Statements



1. #uditors signature

T/e re%r' $/%u& be $(ne (n '/e nameo t*e a&dit ,rm and/or t*e per%ona-name o t*e a&ditora$ ar%r(a'e*

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Statements



2. 3ate of the report

T/e re%r' $/%u& be a'e a$ %4 '/e (omp-etiono a-- e%%entia- a&dit pro(ed&re%*

'/e au('%r $/%u& n%' a'e '/e re%r' ear&(er'/an '/e a'e %n ./(c/ '/e nanc(a& $'a'emen'$are $(ne %r ar%e by '/e manaemen', anear&(er '/an '/e a'e %n ./(c/ '/e au('%r /a$

%b'a(ne $u>c(en' ar%r(a'e au(' e(ence*

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Statements



$4. #uditors address

T/e re%r' $/%u& name a $ec(c-o(ation *ere t*e a&ditormaintain% *i% o'(e*

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PPSSA 1700 Forming an Opinion and Reporting on Financial

Statements

T*e Standard IndependentT*e Standard Independent

A&ditor!% Report 5IARA&ditor!% Report 5IAR

T/e acc%un'(n r%4e$$(%n eeme ('nece$$ary '% $'anar(e '/e 4%rma' %4 '/ere%r' (n %rer '%:

A%( c%n4u$(%n am%n '/e reaer$ %4 '/ere%r'

A&er' '/e reaer$ (n c(rcum$'ance$ (n ./(c/'/e au('%r m%(e$ /($ re%r'

Pr%m%'e '/e cre(b(&('y %4 '/e re%r' (n(n'erna'(%na& mar3e'

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Statements

ISSAIPPSSA #e6u(remen'$ISSAIPPSSA #e6u(remen'$

Slide 4.1.31

ISSAIReeren

(e"omp-ian(e Re6&irement

%SSA%1700&10

%he auditor shall form an opinion on whetherthe nancial statements are prepared, in all

material respects, in accordance with theapplica-le nancial reporting framework.

%SSA%1700&11

(n order to form that opinion, the auditor shallconclude as to whether the auditor has

o-tained reasona-le assurance a-out whetherthe nancial statements as a whole are freefrom material misstatement, whether due tofraud or error.

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Auditors Report on

Financial Statements

Forming an

Opinion on

F/S

PPSSA 1700

Modifications

to Opinion in

the IAR

PPSSA 1705

Emphasis of

Matter and

Other Matters

in the IARPPSSA1706

Comparative

and

Corresponding

FinancialStatements

PPSSA 1710

Slide 4.2.32

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$OIFI"ATIONS TO THE$OIFI"ATIONS TO THE

OPINION IN THEOPINION IN THEINEPENENTINEPENENT

AUITOR!S REPORTAUITOR!S REPORT

PPSSA !"#PPSSA !"#


PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent

A#ditors Report

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Statements

Tpe% o a&dit opinionTpe% o a&dit opinion

$. 5nmodied

&. +odied

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PPSSA 170% &odi"ication o" in t$e !AR

$odi,ed Opinion$odi,ed Opinion

6ecessary when71*T/e au('%r c%nc&ue$, ba$e %n '/eau(' e(ence %b'a(ne, '/a' '/enanc(a& $'a'emen'$ a$ a ./%&e are n%'

4ree 4r%m ma'er(a& m($$'a'emen'G %r2*T/e au('%r ($ unab&e '% %b'a(n$u>c(en' ar%r(a'e au(' e(ence '%

c%nc&ue '/a' '/e nanc(a& $'a'emen'$a$ a ./%&e are 4ree 4r%m ma'er(a&m($$'a'emen'*

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PPSSA 170% &odi"ication o" Opinion in t$e !AR

Tpe% o $odi,ed OpinionTpe% o $odi,ed Opinion

8ualied

#dverse

3isclaimer

Slide 4.1.36

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Slide 4.1.37

8ualied Opinion

!a-T/e au('%r, /a(n %b'a(ne $u>c(en'ar%r(a'e au(' e(ence, c%nc&ue$ '/a'm($$'a'emen'$, (n((ua&&y %r (n '/e area'e,are ma'er(a&, bu' n%' era$(e, '% '/e nanc(a&$'a'emen'$G %r

!b- T/e au('%r ($ unab&e '% %b'a(n $u>c(en'ar%r(a'e au(' e(ence %n ./(c/ '% ba$e '/e

%(n(%n, bu' '/e au('%r c%nc&ue$ '/a' '/e%$$(b&e eec'$ %n '/e nanc(a& $'a'emen'$ %4une'ec'e m($$'a'emen'$, (4 any, c%u& bema'er(a& bu' n%' era$(e*

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Slide 4.1.39

3isclaimer of Opinion

1*T/e au('%r $/a&& ($c&a(m an%(n(%n ./en '/e au('%r ($ unab&e '%

%b'a(n $u>c(en' ar%r(a'e au('e(ence %n ./(c/ '% ba$e '/e%(n(%n, an '/e au('%r c%nc&ue$'/a' '/e %$$(b&e eec'$ %n '/enanc(a& $'a'emen'$ %4 une'ec'em($$'a'emen'$, (4 any, c%u& be b%'/ma'er(a& an era$(e*

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Slide 4.1.40

3isclaimer of Opinion2*T/e au('%r $/a&& ($c&a(m an %(n(%n ./en,(n e'reme&y rare c(rcum$'ance$ (n%&(nmu&'(&e uncer'a(n'(e$, '/e au('%r c%nc&ue$'/a', n%'.('/$'an(n /a(n %b'a(ne$u>c(en' ar%r(a'e au(' e(encerear(n eac/ %4 '/e (n((ua&uncer'a(n'(e$, (' ($ n%' %$$(b&e '% 4%rm an

%(n(%n %n '/e nanc(a& $'a'emen'$ ue '%'/e %'en'(a& (n'erac'(%n %4 '/e uncer'a(n'(e$an '/e(r %$$(b&e cumu&a'(e eec' %n '/enanc(a& $'a'emen'$*

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$ateria-it "on%ideration$ateria-it "on%ideration

Materiality and pervasiveness (large-scale) ! e!!ect n !inancial state"ents

deter"ine t#e pinin t $e e%pressed.



A#ditors ReportSlide 4.1.41

Perasie A term #sed' in t$e conte(t o"misstatements' to descri)e t$e e""ects on

t$e "inancial statements o" misstatements

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Pervasive e!e"ts on the #nan"ialPervasive e!e"ts on the #nan"ial

statements are those that$ in thestatements are those that$ in the

auditor%s &udgment:auditor%s &udgment:a- Are n%' c%nne '% $ec(ce&emen'$, acc%un'$ %r ('em$ %4 '/enanc(a& $'a'emen'$G

b- I4 $% c%nne, rere$en' %r c%u&rere$en' a $ub$'an'(a& r%%r'(%n %4'/e nanc(a& $'a'emen'$G %r

c- In re&a'(%n '% ($c&%$ure$, are4unamen'a& '% u$er$;uner$'an(n %4 '/e nanc(a&$'a'emen'$*

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Matters Affecting the

Auditors $nmodified

Opinion

Matters %ot Affecting the

Auditors $nmodifiedOpinion

Scope &imitations

'isagreement (ith Mgt)

$ncertainties

Inconsistencies

*oing Concern $ncertainties

+ustifia,le *AAP 'eparture

Modifications of the Standard Audit Report




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Matters Affecting the Auditors $n-ualified Opinion

Scope &imitations*AAP .iolation

Materialighl0

Material

1ualified

Opinion

1ualified

Opinion

'isclaimer of

Opinion

ighl0MaterialMaterial

Adverse

Opinion

Matters Affecting the

Auditors $nmodified Opinion

Scope &imitations'isagreement (ith Mgt)




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i%agreement it*i%agreement it*

$anagement$anagement

T/e au('%r may ($aree .('/manaemen' ab%u' cer'a(n ma''er$ $uc/a$ '/e acce'ab(&('y %4 acc%un'(n %&(c(e$$e&ec'e, '/e me'/% %4 '/e(r a&(ca'(%n,%r '/e ae6uacy %4 ($c&%$ure$ (n '/e

nanc(a& $'a'emen'$*I4 $uc/ ($areemen'$ are $(n(can' '% '/e

nanc(a& $'a'emen'$, '/e au('%r $/%u&ere$$ a 6&a-i,ed%r an ad)er%e

%(n(%n*




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S(ope #imitation%S(ope #imitation%

Sc%e &(m('a'(%n$ ar($e ./en '/e au('%r($ &na+-e to perorm ne(e%%ar a&ditpro(ed&re% %r '/e au('%r ($ &na+-e togat*er %&'(ient appropriate

e)iden(eab%u' an a$$er'(%n*A &(m('a'(%n %n '/e $c%e %4 '/e au('%r;$

.%r3 may be (m%$e by '/e en'('y %r(m%$e by c(rcum$'ance$*

A $c%e &(m('a'(%n .(&& re$u&' '% e('/er6&a-i,ed%r a di%(-aimer%4 an %(n(%n




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O)er(oming S(ope #imitationO)er(oming S(ope #imitation

Au('%r$ may be ab&e '% %erc%me$c%e &(m('a'(%n$ by er4%rm(na&'erna'(e r%ceure$ '% $u%r' '/e

unm%(e %(n(%n %n '/e nanc(a&$'a'emen'$*




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#imited Reporting O+e(ti)e#imited Reporting O+e(ti)e

In $%me (n$'ance$, '/e au('%r .(&& bea$3e '% re%r' %n&y %n '/e en'('y;$ba&ance $/ee' bu' n%' %n %'/er ba$(cnanc(a& $'a'emen'$* T/($ enaemen' ($

3n%.n a$-imited reporting o+e(ti)e.




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E8e(t on t*e A&dit ReportE8e(t on t*e A&dit Report

/eneer '/e au('%r ere$$e$ an %(n(%n'/a' ($ %'/er '/an unm%(e, a (-earde%(ription o a-- t*e %&+%tanti)erea%on% $/%u& be (nc&ue (n '/e re%r'an, un&e$$ (mrac'(cab&e, a 6uan'(ca'(%n %4'/e %$$(b&e eec'!$- %n '/e nanc(a&$'a'emen'$*


PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report

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Trainers Training on PPSSA Session 4.2PPSSA 170% &odi"ications to t$e Opinion o" t$e !AR


Slide 4.1.50

ISSAIReeren(e

"omp-ian(e Re6&irement

%SSA%1705& 1'

I4 '/ere ($ a ma'er(a& m($$'a'emen' %4 '/enanc(a& $'a'emen'$ '/a' re&a'e$ '% '/e n%n+($c&%$ure %4 (n4%rma'(%n re6u(re '% be($c&%$e, '/e au('%r $/a&&: !a- D($cu$$ '/en%n+($c&%$ure .('/ '/%$e c/are .('/%ernanceG !b- De$cr(be (n '/e ba$($ 4%rm%(ca'(%n arara/ '/e na'ure %4 '/e%m(''e (n4%rma'(%nG an !c-

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Trainers Training on PPSSA Session 4.2PPSSA 170% &odi"ications to t$e Opinion o" t$e !AR


Slide 4.1.51

ISSAIReeren(e

"omp-ian(e Re6&irement

%SSA%1705& (0

I4 '/e m%(ca'(%n re$u&'$ 4r%m an (nab(&('y '%%b'a(n $u>c(en' ar%r(a'e au(' e(ence,'/e au('%r $/a&& (nc&ue (n '/e ba$($ 4%rm%(ca'(%n arara/ '/e rea$%n$ 4%r '/a'(nab(&('y*

%SSA%1705&(1

Een (4 '/e au('%r /a$ ere$$e an aer$e%(n(%n %r ($c&a(me an %(n(%n %n '/e

nanc(a& $'a'emen'$, '/e au('%r $/a&& e$cr(be(n '/e ba$($ 4%r m%(ca'(%n arara/ '/erea$%n$ 4%r any %'/er ma''er$ %4 ./(c/ '/eau('%r ($ a.are '/a' .%u& /ae re6u(re am%(ca'(%n '% '/e %(n(%n, an '/e eec'$'/ere%4* !#e4: Para* A20-

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Matters %O2 Affecting the Auditors $n-ualified Opinion

$ncertainties

*oing Concern

+ustifia,le *AAP

'eparture

Inconsistencies

Ade-uatel0

disclosed

in the notes

to financial

statements

Unqualifedopinion withemphasis o a

matterparagraph



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Un(ertaintUn(ertaint

An uncer'a(n'y ($ a ma''er ./%$e%u'c%me een$ %n 4u'ure ac'(%n$ %reen'$ n%' uner '/e (rec' c%n'r%& %4 '/een'('y bu' '/a' may aec' '/e nanc(a&$'a'emen'$* /en '/ere are %igni,(ant

&n(ertaintie% t*at are ade6&ate-a((o&nted or and di%(-o%ed (n '/en%'e$ '% '/e nanc(a& $'a'emen'$, '/eau('%r $/%u& c%n$(er m%(4y(n '/ere%r' by adding an e9p-anator

paragrap* to t*e &n6&a-i,ed report'% em/a$(e '/e ma'er(a& uncer'a(n'y*



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$&-tip-e Un(ertaintie% a8e(ting$&-tip-e Un(ertaintie% a8e(ting

t*e Finan(ia- Statement%t*e Finan(ia- Statement%

In e'reme ca$e$, $uc/ a$ $('ua'(%n$(n%&(n mu&'(&e uncer'a(n'(e$ '/a' are$(n(can' '% '/e nanc(a& $'a'emen'$, '/e

au('%r may c%n$(er (' ar%r(a'e '%i%%&e a di%(-aimer o opinion(n$'ea %4a(n an em/a$($ %4 a ma''erarara/*



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In(on%i%ten(In(on%i%ten(

"on%i%ten( %4 nanc(a& $'a'emen're$en'a'(%n$ may be aec'e by

C/ane$ (n re%r'(n en'('y

C/ane$ aec'(n acc%un'(n r(nc(&e$



Slide 4.1.57

* 8 i

i

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"*ange%"*ange% a8e(tinga8e(tingA((o&ntingA((o&nting

Prin(ip-e%Prin(ip-e%

& C/ane$in a""ounting prin"iples: ac/ane 4r%m C%$' '% Fa(r Va&ue me'/%%4 acc%un'(n 4%r PPE*

& 'orre"tion of error involving prin"iples:

a c/ane (n acc%un'(n 4%r %ub'4u&acc%un'$ 4r%m '/e (rec' .r('e+%me'/% !)%n+KAAP- '% '/e a&&%.anceme'/% !KAAP-*

& C/ane 4r%m Fa(r a&ue '% E6u('y me'/%%4 acc%un'(n 4%r e6u('y $ecur('(e$



Slide 4.1.58

:&%ti,a+-e depart&re rom:&%ti,a+-e depart&re rom

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:&%ti,a+-e depart&re rom:&%ti,a+-e depart&re rom

PPSAS/IFRSPPSAS/IFRS

anaemen' may Bue (' nece$$ary '%ear' 4r%m nanc(a& re%r'(n $'anar$(n %rer '% c%me u .('/ a 4a(rre$en'a'(%n %4 nanc(a& $'a'emen'$* I4

'/e rea$%n$ are ade6&ate- di%(-o%edan '/e au('%r be&(ee$ '/a' $uc/ aear'ure ($&%ti,ed'/e au('%r $/%u&ere$$ an &n6&a-i,ed opinion and

di%(-o%e t*e depart&re in a %eparateparagrap* %4 '/e re%r'*



Slide 4.1.59

di, i

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S&mmar o $odi,(ation% oS&mmar o $odi,(ation% o

t*e Standard Un6&a-i,edt*e Standard Un6&a-i,ed

ReportReport Effect on FinancialStatements

Matters that affect the $nmodified Opinion Material ighl0Material orPervasive

1. 'isagree"ent it# Manage"ent *ali!ied +dverse

2. Scpe ,i"itatin *ali!ied 'isclai"er

Matters that do not affect the $nmodifiedOpinion

1. ncertainties

2. ing /ncern ncertainties

3. ncnsistencies

4. *sti!ia$le depart*re !r" +SS

n*ali!ied

pinin it#e"p#asis ! a

"atter

paragrap#



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/% $/%u& ac' a$ '/e r(nc(a&/% $/%u& ac' a$ '/e r(nc(a&

au('%r?au('%r?T/e au('%r $/%u& c%n$(er ./e'/er /($ %.nar'(c(a'(%n ($ $u>c(en' '% be ab&e '% ac' a$ '/er(nc(a& au('%r* T/($ c%n$(era'(%n (n%&e$a$$e$$men' %4

'/e ma'er(a&('y %4 '/e %r'(%n %4 '/e nanc(a&$'a'emen' au('eG

'/e r(nc(a& au('%r;$ 3n%.&ee %4 '/e %era&&

nanc(a& $'a'emen'$G an '/e (m%r'ance %4 '/e c%m%nen'!$- au('e byan%'/er au('%r*



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e(i%ion o *et*er to Re-e(i%ion o *et*er to Re-

on t*eon t*e;or o Ot*er A&ditor% or;or o Ot*er A&ditor% ornotnotT/e Pr(nc(a& Au('%r $/%u& ma3e

&dgment a% to *et*er to re-

on t*e or o ot*er a&ditor%or not* F%r '/($ ur%$e, '/eau('%r $/%u& c%n$(er '/e

proe%%iona- (ompeten(e< and independen(e o t*e ot*era&ditor%



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Re-ing on t*e ;or oRe-ing on t*e ;or o

Ot*er A&ditorOt*er A&ditor& Pr(nc(a& Au('%r A$$ume$

#e$%n$(b(&('y 4%r '/e .%r3 %4"'/er Au('%r

& Pr(nc(a& Au('%r %e$ n%'A$$ume #e$%n$(b(&('y 4%r '/e

.%r3 %4 "'/er Au('%r



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E9amp-e% o $odi,edE9amp-e% o $odi,ed

A&dit Report%A&dit Report%



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=AAP >io-ation?Inappropriate A((o&nting $et*od? @&a-i,ed Opinion

Report on the Financial Statements

e /ae au('e *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anar unm%(e

re%r'-

(anagement%s Responsi)ilit* for the Finan"ial Statements

anaemen' ($ re$%n$(b&e 4%r L !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-

Auditor%s Responsi)ilit*

"ur re$%n$(b(&('y ($ '% L !rema(n(n .%r$ are '/e $ame a$ '/e $'anar unm%(e

re%r'-

+asis for ,uali#ed -pinion

A$ ($cu$$e (n )%'e M '% '/e nanc(a& $'a'emen'$, n% erec(a'(%n /a$ been r%(e(n '/e nanc(a& $'a'emen'$ ./(c/ rac'(ce, (n %ur %(n(%n, ($ n%' (n acc%rance .('/In'erna'(%na& F(nanc(a& #e%r'(n S'anar$* T/e r%($(%n 4%r '/e year eneDecember 1, 20M7, $/%u& be ba$e %n '/e $'ra(/'+&(ne me'/% %4 erec(a'(%nu$(n annua& ra'e$ %4 5N 4%r '/e bu(&(n an 20N 4%r '/e e6u(men'* Acc%r(n&y, '/ee a$$e'$ $/%u& be reuce by accumu&a'e erec(a'(%n %4 an '/e &%$$ 4%r

'/e year an accumu&a'e ec(' $/%u& be (ncrea$e by an , re$ec'(e&y*

-pinion

In %ur %(n(%n, ece' 4%r '/e eec' %n '/e nanc(a& $'a'emen'$ %4 '/e ma''ere$cr(be (n '/e Oa$($ 4%r ua&(e "(n(%n arara/, '/e nanc(a& $'a'emen'$re$en' 4a(r&y, (n a&& ma'er(a& re$ec'$ *** !rema(n(n .%r$ are '/e $ame a$ '/e$'anar unm%(e re%r'-



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=AAP >io-ation?Inade6&ate i%(-o%&re?Ad)er%e Opinion


e /ae au('e *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-


anaemen' ($ re$%n$(b&e 4%r L !rema(n(n .%r$ are '/e $ame a$ '/e$'anar unm%(e re%r'-


"ur re$%n$(b(&('y ($ '% L !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-

+asis for Adverse -pinion

"n January 15, 20M7, '/e C%many ($$ue eben'ure$ (n '/e am%un' %4 4%r '/e ur%$e %4 nanc(n &an' ean$(%n* T/e eben'ure areemen're$'r(c'$ '/e aymen' %4 4u'ure ca$/ ((en$ '% earn(n$ a4'er December1, 20M* In %ur %(n(%n, ($c&%$ure %4 '/($ (n4%rma'(%n ($ re6u(re by * * * * * *

-pinion

In %ur %(n(%n, becau$e %4 '/e eec'$ %4 '/e ma''er$ ($cu$$e (n '/e Oa$($4%r Aer$e "(n(%n arara/, '/e nanc(a& $'a'emen'$ % n%' re$en'4a(r&y, (n a&& ma'er(a& re$ec'$, '/e nanc(a& %$('(%n %4 AOC C%many a$ %4December1, 20M7, an %4 ('$ nanc(a& er4%rmance an ('$ ca$/ Q%.$ 4%r'/e year '/en ene (n acc%rance .('/ '/e In'erna'(%na& F(nanc(ae%r'(n S'anar$*8



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#imitation on S(ope?@&a-i,ed Opinion


e /ae au('e *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anarun6ua&(e re%r'-


anaemen' ($ re$%n$(b&e 4%r L !rema(n(n .%r$ are '/e $ame a$ '/e$'anar unm%(e re%r'-


"ur re$%n$(b(&('y ($ '% *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-*

+asis for ,uali#ed -pinion

e ( n%' %b$ere '/e c%un'(n %4 '/e /y$(ca& (nen'%r(e$ a$ %4 December1, 20M7, $(nce '/a' a'e .a$ r(%r '% '/e '(me .e .ere (n('(a&&y enae a$au('%r$ 4%r '/e C%many* ".(n '% '/e na'ure %4 '/e C%many;$ rec%r$,.e .ere unab&e '% $a'($4y %ur$e&e$ a$ '% (nen'%ry 6uan'('(e$ by %'/erau(' r%ceure$*

-pinion

In %ur %(n(%n, ece' 4%r '/e %$$(b&e eec'$ %4 $uc/ aBu$'men'$, (4 any,a$ m(/' /ae been e'erm(ne '% be nece$$ary /a .e been ab&e '%$a'($4y %ur$e&e$ a$ '% /y$(ca& (nen'%ry 6uan'('(e$, '/e nanc(a&$'a'emen'$ re$en' 4a(r&y, (n a&& ma'er(a& re$ec'$*** !rema(n(n .%r$ are'/e $ame a$ '/e $'anar unm%(e re%r'-



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#imitation on S(ope?i%(-aimer o Opinion


e .ere enae '% au(' '/e acc%many(n nanc(a& $'a'emen'$ %4 AOC

C%many, ./(c/ c%mr($e '/e $'a'emen' %4 nanc(a& %$('(%n a$ %4 December 1,20M7, an '/e $'a'emen' %4 c%mre/en$(e (nc%me, $'a'emen' %4 c/ane$ (ne6u('y an $'a'emen' %4 ca$/ Q%.$ 4%r '/e year '/en ene, an a $ummary %4$(n(can' acc%un'(n %&(c(e$ an %'/er e&ana'%ry (n4%rma'(%n*


anaemen' ($ re$%n$(b&e 4%r L !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-

Auditor%s Responsi)ilit*"ur re$%n$(b(&('y ($ '% ere$$ an %(n(%n %n '/e$e nanc(a& $'a'emen'$ ba$e %nc%nuc'(n '/e au(' (n acc%rance .('/ Pub&(c Sec'%r S'anar$ %n Au('(n*Oecau$e %4 '/e ma''er e$cr(be (n '/e Oa$($ 4%r D($c&a(mer %4 "(n(%n arara/,/%.eer, .e .ere n%' ab&e '% %b'a(n $u>c(en' ar%r(a'e au(' e(ence '%r%(e a ba$($ 4%r an au(' %(n(%n*

+asis for .is"laimer of -pinion!A a arara/ ($cu$$(n '/e $c%e &(m('a'(%n a$ 4%&&%.$:-

e .ere n%' ab&e '% %b$ere a&& /y$(ca& (nen'%r(e$ an c%nrm acc%un'$rece(ab&e ue '% &(m('a'(%n$ &ace %n '/e $c%e %4 %ur .%r3 by '/e C%many* L

-pinion

Oecau$e %4 '/e $(n(cance %4 '/e ma''er$ e$cr(be (n '/e Oa$($ 4%r D($c&a(mer %4"(n(%n arara/, .e % n%' ere$$ an %(n(%n %n '/e nanc(a& $'a'emen'$*8



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Un6&a-i,ed opinion it* an emp*a%i% o a matter paragrap*


e /ae au('e *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-

(anagement%s Responsi)ilit* for the Finan"ial Statementsanaemen' ($ re$%n$(b&e 4%r L !rema(n(n .%r$ are '/e $ame a$'/e $'anar unm%(e re%r'-

Auditor%s Responsi)ilit*"ur re$%n$(b(&('y ($ '% L !rema(n(n .%r$ are '/e $ame a$ '/e$'anar unm%(e re%r'-

-pinionIn %ur %(n(%n, '/e nanc(a& $'a'emen'$ re$en' 4a(r&y, (n a&& ma'er(a&re$ec'$ *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anar unm%(ere%r'-

('/%u' 6ua&(4y(n %ur %(n(%n .e ra. a''en'(%n '% )%'e M '% '/enanc(a& $'a'emen'$* T/e C%many ($ '/e e4enan' (n a &a.$u('a&&e(n (n4r(nemen' %4 cer'a(n a'en' r(/'$ an c&a(m(n r%ya&'(e$an un('(e amae$* T/e C%many /a$ &e a c%un'er ac'(%n, anre&(m(nary /ear(n$ an ($c%ery r%cee(n$ %n b%'/ ac'(%n$ are (nr%re$$* T/e u&'(ma'e %u'c%me %4 '/e ma''er cann%' re$en'&y bee'erm(ne, an n% r%($(%n 4%r any &(ab(&('y '/a' may re$u&' /a$ beenmae (n '/e nanc(a& $'a'emen'$ 8

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