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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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Trainers Training on PPSSA Session 4.2
PPSSA 1700 Forming an Opinion and Reporting on FinancialStatements
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$%&u'(%n )%* 201+007a'e January 29, 201-
4
Trainers Training on PPSSA Session 4.2
PPSSA 1700 Forming an Opinion and Reporting on FinancialStatements Slide 4.1.4
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Trainers Training on PPSSA Session 4.2PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements Slide 4.1.5
Forming an Opinion and Reportingon F/S
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THE AUITOR!S REPORT ONTHE AUITOR!S REPORT ON
FINAN"IA# STATE$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-
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
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
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
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
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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on t$e Financial Statements 03/17/15
Two types of General Purpose ReportingTwo types of General Purpose Reporting
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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial Statements 03/17/15
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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial Statements 03/17/15
Forming an !pinion " #onsi$erationsForming an !pinion " #onsi$erations
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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial statements. 03/17/15
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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial statements. 03/17/15
Forming an !pinion " #onsi$erationsForming an !pinion " #onsi$erations
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Trainers Training on PPSSA Session 4.2 PPSSA 1700 Formingan Opinion and Reporting on Financial statements. 03/17/15
Forming an !pinion " #onsi$erationsForming an !pinion " #onsi$erations
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements Slide 4.217
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
a%i( e-ement% o t*e a&ditor!%a%i( e-ement% o t*e a&ditor!%
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
a%i( e-ement% o t*e a&ditor!%a%i( e-ement% o t*e a&ditor!%
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
a%i( e-ement% o t*e a&ditor!%a%i( e-ement% o t*e a&ditor!%
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
a%i( e-ement% o t*e a&ditor!%a%i( e-ement% o t*e a&ditor!%
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
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Trainers Training on PPSSA Session 4.1PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
a%i( e-ement% o t*e a&ditor!%a%i( e-ement% o t*e a&ditor!%
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Trainers Training on PPSSA Session 4.2PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
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Trainers Training on PPSSA Session 4.1
PPSSA 1700 Forming an Opinion and Reporting on Financial
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Trainers Training on PPSSA Session 4.2
PPSSA 1700 Forming an Opinion and Reporting on Financial
Statements
ISSAIPPSSA #e6u(remen'$ISSAIPPSSA #e6u(remen'$
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ISSAIReeren
(e"omp-ian(e Re6&irement
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%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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Trainers Training on PPSSA Session 4.2
PPSSA 1700 Forming an Opinion and Reporting on FinancialStatements
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
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PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
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Trainers Training on PPSSA Session 4.1
PPSSA 1700 Forming an Opinion and Reporting on Financial
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Trainers Training on PPSSA Session 4.2
PPSSA 170% &odi"ication o" in t$e !AR
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Trainers Training on PPSSA Session 4.2
PPSSA 170% &odi"ication o" Opinion in t$e !AR
Tpe% o $odi,ed OpinionTpe% o $odi,ed Opinion
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Slide 4.1.36
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Trainers Training on PPSSA Session 4.2
PPSSA 170% &odi"ication o" Opinion in t$e !AR
Tpe% o $odi,ed OpinionTpe% o $odi,ed Opinion
Slide 4.1.37
8ualied Opinion
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Trainers Training on PPSSA Session 4.2
PPSSA 170% &odi"ication o" Opinion in t$e !AR
Tpe% o $odi,ed OpinionTpe% o $odi,ed Opinion
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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Trainers Training on PPSSA Session 4.2
PPSSA 170% &odi"ication o" Opinion in t$e !AR
Tpe% o $odi,ed OpinionTpe% o $odi,ed Opinion
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 $e e%pressed.
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.41
Perasie A term #sed' in t$e conte(t o"misstatements' to descri)e t$e e""ects on
t$e "inancial statements o" misstatements
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Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.42
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 $ncertainties
+ustifia,le *AAP 'eparture
Modifications of the Standard Audit Report
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.43
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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 $nmodified Opinion
Scope &imitations'isagreement (ith Mgt)
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.44
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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*
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.45
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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$$er'(%n*A &(m('a'(%n %n '/e $c%e %4 '/e au('%r;$
.%r3 may be (m%$e by '/e en'('y %r(m%$e by c(rcum$'ance$*
A $c%e &(m('a'(%n .(&& re$u&' '% e('/er6&a-i,ed%r a di%(-aimer%4 an %(n(%n
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.46
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O)er(oming S(ope #imitationO)er(oming S(ope #imitation
Au('%r$ may be ab&e '% %erc%me$c%e &(m('a'(%n$ by er4%rm(na&'erna'(e r%ceure$ '% $u%r' '/e
unm%(e %(n(%n %n '/e nanc(a&$'a'emen'$*
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PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.47
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#imited Reporting O+e(ti)e#imited Reporting O+e(ti)e
In $%me (n$'ance$, '/e au('%r .(&& bea$3e '% re%r' %n&y %n '/e en'('y;$ba&ance $/ee' bu' n%' %n %'/er ba$(cnanc(a& $'a'emen'$* T/($ enaemen' ($
3n%.n a$-imited reporting o+e(ti)e.
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PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependent
A#ditors ReportSlide 4.1.48
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E8e(t on t*e A&dit ReportE8e(t on t*e A&dit Report
/eneer '/e au('%r ere$$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'$*
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PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
Slide 4.1.49
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Trainers Training on PPSSA Session 4.2PPSSA 170% &odi"ications to t$e Opinion o" t$e !AR
ISSAIPPSSA #e6u(remen'$ISSAIPPSSA #e6u(remen'$
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
ISSAIPPSSA #e6u(remen'$ISSAIPPSSA #e6u(remen'$
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
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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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*
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
Slide 4.1.53
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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/*
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
Slide 4.1.56
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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$
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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$
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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$$ an &n6&a-i,ed opinion and
di%(-o%e t*e depart&re in a %eparateparagrap* %4 '/e re%r'*
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
Slide 4.1.59
di, i
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S&mmar o $odi,(ation% oS&mmar o $odi,(ation% o
t*e Standard Un6&a-i,edt*e Standard Un6&a-i,ed
ReportReport Effect on FinancialStatements
Matters that affect the $nmodified Opinion Material ighl0Material orPervasive
1. 'isagree"ent it# Manage"ent *ali!ied +dverse
2. Scpe ,i"itatin *ali!ied 'isclai"er
Matters that do not affect the $nmodifiedOpinion
1. ncertainties
2. ing /ncern ncertainties
3. ncnsistencies
4. *sti!ia$le depart*re !r" +SS
n*ali!ied
pinin it#e"p#asis ! a
"atter
paragrap#
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PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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/% $/%u& ac' a$ '/e r(nc(a&/% $/%u& ac' a$ '/e r(nc(a&
au('%r?au('%r?T/e au('%r $/%u& c%n$(er ./e'/er /($ %.nar'(c(a'(%n ($ $u>c(en' '% be ab&e '% ac' a$ '/er(nc(a& au('%r* T/($ c%n$(era'(%n (n%&e$a$$e$$men' %4
'/e ma'er(a&('y %4 '/e %r'(%n %4 '/e nanc(a&$'a'emen' au('eG
'/e r(nc(a& au('%r;$ 3n%.&ee %4 '/e %era&&
nanc(a& $'a'emen'$G an '/e (m%r'ance %4 '/e c%m%nen'!$- au('e byan%'/er au('%r*
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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e(i%ion o *et*er to Re-e(i%ion o *et*er to Re-
on t*eon t*e;or o Ot*er A&ditor% or;or o Ot*er A&ditor% ornotnotT/e Pr(nc(a& Au('%r $/%u& ma3e
&dgment a% to *et*er to re-
on t*e or o ot*er a&ditor%or not* F%r '/($ ur%$e, '/eau('%r $/%u& c%n$(er '/e
proe%%iona- (ompeten(e< and independen(e o t*e ot*era&ditor%
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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Re-ing on t*e ;or oRe-ing on t*e ;or o
Ot*er A&ditorOt*er A&ditor& Pr(nc(a& Au('%r A$$ume$
#e$%n$(b(&('y 4%r '/e .%r3 %4"'/er Au('%r
& Pr(nc(a& Au('%r %e$ n%'A$$ume #e$%n$(b(&('y 4%r '/e
.%r3 %4 "'/er Au('%r
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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E9amp-e% o $odi,edE9amp-e% o $odi,ed
A&dit Report%A&dit Report%
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=AAP >io-ation?Inappropriate A((o&nting $et*od? @&a-i,ed Opinion
Report on the Financial Statements
e /ae au('e *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anar unm%(e
re%r'-
(anagement%s Responsi)ilit* for the Finan"ial Statements
anaemen' ($ re$%n$(b&e 4%r L !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-
Auditor%s Responsi)ilit*
"ur re$%n$(b(&('y ($ '% L !rema(n(n .%r$ are '/e $ame a$ '/e $'anar unm%(e
re%r'-
+asis for ,uali#ed -pinion
A$ ($cu$$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$'anar unm%(e re%r'-
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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=AAP >io-ation?Inade6&ate i%(-o%&re?Ad)er%e Opinion
Report on the Financial Statements
e /ae au('e *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anarunm%(e re%r'-
(anagement%s Responsi)ilit* for the Finan"ial Statements
anaemen' ($ 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 $'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$*8
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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#imitation on S(ope?@&a-i,ed Opinion
Report on the Financial Statements
e /ae au('e *** !rema(n(n .%r$ are '/e $ame a$ '/e $'anarun6ua&(e re%r'-
(anagement%s Responsi)ilit* for the Finan"ial Statements
anaemen' ($ re$%n$(b&e 4%r L !rema(n(n .%r$ are '/e $ame a$ '/e$'anar unm%(e re%r'-
Auditor%s Responsi)ilit*
"ur re$%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 $'anar unm%(e re%r'-
Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
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Trainers Training on PPSSA Session 4.1
PPSSA 170% &odi"ications to t$e Opinion in t$e !ndependentA#ditors Report
Slide 4.1.69
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Report on the Financial Statements
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