COMPANIES ACT 2014 SAMPLE STATUTORY AUDIT REPORT REPORTING ON ABRIDGED FINANCIAL STATEMENTS These sample reports are illustrative and exclusively for educational purposes only. This document is a guide only and does not purport to give definitive advice. Whilst every care has been taken in the preparation of this document, CPA Ireland does not guarantee the accuracy, appropriateness, and suitability of applicability of any information contained therein. CPA Ireland shall therefore not be liable for any damage or economic loss whether arising from negligence, breach of contract or otherwise of CPA Ireland. Please refer to ISA 700, ISA 705, ISA 706 when concluding an audit assignment.
Example One ILLUSTRATIVE EXAMPLES OF AN AUDITOR S REPORT A. Non-publicly traded company incorporated in Ireland preparing financial statements under Irish GAAP (Based on Example 2 of FRC Bulletin 1(I)) Company is not a listed company. Company either does not qualify as a small company or qualifies as a small company but chooses not to prepare financial statements in accordance with the FRSSE. Company does not prepare group financial statements. INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF XYZ LIMITED We have audited the statutory financial statements of (name of company) for the year ended... which comprise [specify the titles of the primary statements such as the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement, the Statement of Total Recognised Gains and Losses, the Reconciliation of Movements in Shareholders Funds] and the related notes 1. The financial reporting framework that has been applied in their preparation is Irish law and accounting standards issued by the Financial Reporting Council [including FRS 101 Reduced Disclosure Framework] [FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland] [ (Generally Accepted Accounting Practice in Ireland) 2 ](Generally Accepted Accounting Practice in Ireland) This report is made solely to the Company s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company s members those matters we are required to state to them in an auditor s 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 and the Company s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors As explained more fully in the Directors Responsibilities Statement, the directors are responsible for the preparation of the statutory financial statements and for being satisfied that they give a true and fair view and otherwise comply with the Companies Act 2014. Our responsibility is to audit and express an opinion on the statutory financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s [APB s] Ethical Standards for Auditors 3. 1 Auditors reports of entities that do not publish their financial statements on a web site or publish them using PDF format may continue to refer to the financial statements by reference to page numbers. Auditors reports specify the titles of the primary statements of the relevant financial reporting framework. 2 Include for periods beginning on or after 1 January 2015 and earlier periods if FRS 101/102 was early adopted. 3 If the company is a small entity as defined in paragraph 4(ii) of the Ethical Standard Provisions Available for Small Entities (ES PASE), add including APB Ethical Standard Provisions Available for Small Entities (Revised), in the circumstances set out in note x to the financial statements if the auditor has availed itself of the exemption set out in paragraph 24 of ES PASE. The Appendix to ES PASE provides illustrative disclosures of relevant circumstances where the auditor has taken advantage of such an exemption.
Scope of the audit of the financial statements Either: A description of the scope of an audit of financial statements is [provided on the FRC s website at www.frc.org.uk/audit-scope-ireland]/ [set out [on page ] of the Annual Report]. Or: An audit involves obtaining evidence about the amounts and disclosures in the statutory financial statements sufficient to give reasonable assurance that the statutory financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors Report to identify material inconsistencies with the audited statutory financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on statutory financial statements In our opinion the financial statements: give a true and fair view of the assets, liabilities and financial position of the company as at.. and of its profit [loss] for the year then ended; [and] Option 1 have been properly prepared in accordance with the relevant financial reporting which consists of, collectively, [Generally Accepted Accounting Practice in Ireland][FRS 101 Reduced Disclosure Framework 4 ] [FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland]] and the requirements of the Companies Act 2014. Option 2 have been properly prepared in accordance with [Generally Accepted Accounting Practice in Ireland FRS 101 Reduced Disclosure Framework] [FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland]] ][; and have been properly prepared in accordance with the requirements of the Companies Act 2014:. Matters on which we are required to report by the Companies Act 2014 4 For accounting periods beginning 1 January 2015. For later periods (and early adoption of FRS 101 or 102) the more specific reference to the applicable accounting standards forming part of Irish GAAP is preferable.
We have obtained all the information and explanations which we consider necessary for the purposes of our audit. In our opinion the accounting records of the company were sufficient to permit the statutory financial statements to be readily and properly audited 5. The statutory financial statements are in agreement with the accounting records. In our opinion the information given in the Directors Report is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of our obligation under the Companies Act 2014 to report to you if, in our opinion, the disclosures of directors remuneration and transactions specified by sections 305 to 312 of the Act are not made. [ Statutory Auditor s Signature] Joseph Kelly for and on behalf of ABC &Co. Ltd Certified Public Accountants and Statutory Audit Firm [Location] [Date] 5 Accounting records Where returns from branches are material in the context of the auditors forming their opinion as to whether the financial statements give a true and fair view the following wording should be used: "In our opinion the accounting records of the company were sufficient to permit the financial statements to be readily and properly audited and information and returns adequate for our audit have been received from branches of the company not visited by us.t"
Example 2 REPORTING ON ABRIDGED FINANCIAL STATEMENTS Report on abridged financial statements annexed to the annual return INDEPENDENT AUDITORS' SPECIAL REPORT TO THE DIRECTORS OF XYZ LIMITED PURSUANT TO SECTION 356 OF THE COMPANIES ACT 2014 On [date] we reported, as auditors of XYZ Limited, to the directors of the company on the copy of the abridged financial statements for the year ended [date] on pages... to..., and our report was as follows: 'We have examined: i. The abridged financial statements for the year ended [date] on pages... to... which the directors of XYZ Limited propose to annex to the annual return of the company; and ii. the statutory financial statements [to be laid before the Annual General Meeting] 6, which form the basis for those abridged financial statements. Respective responsibilities of directors and auditors It is your responsibility to prepare abridged financial statements which comply with the Companies Act 2014. It is our responsibility to form an independent opinion that the directors are entitled under section 352 of the Companies Act 2014 to annex abridged financial statements to the annual return of the company and that those abridged financial statements have been properly prepared pursuant to sections 352 to 354 of that Act and to report our opinion to you. This report is made solely to the company's directors as a body, in accordance with Section 356 of the Companies Act 2014. Our work has been undertaken so that we might state to the company's directors those matters we are required to state to them under section 356 of the Companies Act, 2014 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 and the company's directors as a body, for our work, for this report, or for the opinion we have formed. Basis of opinion We have carried out the procedures we consider necessary to confirm, by reference to the financial statements, that the company is entitled to annex abridged financial statements to the annual return of the company and that the abridged financial statements are properly prepared. 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 6 3 Not to be included in the case of single member company in respect of which no AGM is required.
In our opinion the directors are entitled under section 352 of the Companies Act 2014 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 352 to 354 of that Act (exemptions available to small and medium-sized companies).' [Option 2 here is to state..section 352 and 353 of that Act (exemptions available for small companies) OR section 352 and 354 of that Act (exemptions available for medium companies)] Other Information [The abridged financial statements have been prepared from the statutory financial statements [to be laid before the Annual General Meeting], in respect of which our audit report, as detailed below, was modified.] 7 On [date] we reported, as auditors of XYZ Limited 8, to the members on the company's statutory financial statements for the year ended [date] [to be laid before its Annual General Meeting] and our report was as follows: [Insert wording of auditors' report on statutory financial statements of the company required under section 391 of the Companies Act 2014] [Statutory Auditor s Signature] Joseph Kelly for and on behalf of ABC &Co. Ltd Certified Public Accountants and Statutory Audit Firm [Location] [Date] 7 For inclusion as necessary 8 Where the financial statements to be laid before the AGM have been reported on by the previous auditors of the company, this paragraph would be reworded as follows: "On [date] ABC and Co. reported, as auditors of XYZ Limited, to the members on the company's financial statements '