AUDIT OF GROUP FS REPORTS ON SPECIAL PURPOSE AUDIT OF SINGLE FINANCIAL STATEMENT OR SPECIFIC REPORTING ON SUMMARY

A group auditor is the auditor with responsibility for reporting FINANCIAL STATEMENTS ELEMENT OF A FINANCIAL STATEMENT FINANCIAL STATEMENTS
the FS of an entity when those FS include financial information SPFS are made by entities that are complying with a These are engagements that requested to express an opinion on a single FS or one of components
of one or more components audited by another auditor. Summary financial statements are derived only
special financial reporting framework designed to of a FS. This type of engagement does not result to an expression of an opinion on FS taken as a from the complete set of FS (to highlight the entity’s
If the group auditor has not become satisfied about the meet the needs of specific users (PSA 800). whole. financial position and results of operation).
professional competence and the independence of the Examples include other comprehensive basis of When accepting this type of engagement: the auditor may need to examine other related accounts, The auditor’s report on the audited FS should express
component, the group auditor should obtain sufficient accounting like cash basis accounting, financial materiality should be related to the specific account, and auditor’s report on a component of FS an opinion about whether the summary FS are
appropriate audit evidence relating to the financial info. of the reporting framework established by SEC, IC, or BSP, should not accompany the FS of the entity. consistent with the audited FS or whether the
entity by auditing the FS of the component. and financial reporting provisions of a contract such When the auditor undertakes an engagement to report on a single FS or on a specific element of a summary FS are a fair summary of the audited FS.
Auditor’s report on group financial statements shall not refer as bond indenture, loan agreement or a project grant. FS, the auditor should express a separate opinion for each engagement.
to a component auditor. not prohibited by law
Audit report of SPFS should include an EMPHASIS OF In case the auditor expresses an adverse or disclaimer of opinion as a whole but the auditor
MATTER PARAGRAPH. consider it appropriate to express an unmodified opinion on the single FS/specific element (which not published together
MATERIAL MISSTATEMENT OF FACTS: is a piecemeal opinion), the auditor shall only do so if: does not constitute a major portion
This exists when other information, not related to matters
appearing to FS, is incorrectly presented. If the auditor concludes
that there is a material misstatement of fact and the mgmt. MODIFICATION TO THE OPINION
refuses to correct the other information, the auditor should notify
the audit committee and if necessary, obtain legal advice.
MATERIAL MISSTATEMENT Basis of SCOPE LIMITATION
Inappropriate accounting policy selected Modification (Auditor is unable to perform necessary audit procedures/auditor is
OTHER MATTER Misapplication of selected accounting policy Paragraph unable to obtain sufficient appropriate evidence)
(to communicate a matter other than those that are presented or disclosed in the FS)
Inappropriate or inadequate disclosure (placed immediately before
the Opinion Paragraph)
Circumstances beyond control of the entity Circumstance imposed
REPORTING ON COMPARATIVE Circumstances relating to nature or timing of auditor’s work scope limitation
MM Limitations imposed by management
INFORMATION Material but not Material & a description of nature of
Mgmt. imposed
scope limitation
PSA 710 identified two framework on comparative information: Pervasive Pervasive misstatements and a
quantification of its
Should request first to mgmt. to remove the limitation
(Material enough to affect the FS but not to (Material enough to affect the FS and financial effects.

Comparative FS Corresponding Figures

overshadow the fair presentation of FS as a
whole)
overshadows the fair presentation of
FS as a whole) Material & Material &
SL Pervasive
amounts and disclosures for the preceding amounts and disclosures for the should explain the reason Pervasive
(Material enough to affect the FS and
period are not part of current FS preceding period are part of current FS Qualified Opinion Adverse Opinion of inability to obtain
sufficient appropriate audit
(Material enough to affect the FS and
overshadows the fair presentation of overshadows the fair presentation of
(use the phrase “except for the effects of (should state that FS do not present evidence. FS as a whole) FS as a whole)
the matter described in BMP...) fairly)
PPFS were audited by a (comparatives are not specifically identified because Piecemeal Opinion
continuing auditor
the opinion is only on the current period FS only)
PSA 700 It is an unmodified opinion Qualified Opinion Disclaimer of Opinion Or resign from the
expressed on one or more (use the phrase “except for the effects of (State that the auditor has not been able to obtain sufficient engagement (for mgmt.
(state the fact of different updated opinion report, date of PY requires an auditor’s components of the FS while the matter described in BMP...) appropriate evidence to provide a basis of opinion)
imposed SL)

report, type of PY opinion, reason of changing opinion) FS PREPARED USING MORE report to contain a expressing an adverse or
THAN ONE FIN. FRAMEWORKS clear expression of
the auditor’s opinion
disclaimer of opinion as a whole. THE UNMODIFIED REPORT
PPFS were audited by (Include in other matter paragraph if the frameworks on the FS.
PSA 705 does not allow this
practice. This is issued when the auditor concludes that based on the audit evidence
another auditor are acceptable) obtained, that the FS is fairly presented, in all material aspects in accordance
(may either reissue predecessor PPFS or successor will with the applicable financial reporting framework.
make reference on predecessor’s report)
LIMITING THE USE OF THE (to emphasize the independence of the auditor
(location in the jurisdiction where
AUDITOR’S REPORT Auditor’s Address Title and to distinguish the report from others)
PPFS were not audited (Indicate in Other Matter Paragraph that auditor’s
the auditor maintains his office)
(revise PPFS if it is materially misstated, then if mgmt.
report is intended solely for intended users) (date as of the completion of Date of Report
EMPHASIS OF MATTER (report should be addressed to those
refused to revise FS, the auditor will issue a QUALIFIED OR Addressee
ADVERSE OPINION) all essential audit procedures) parties for whom the report is prepared
SUBSEQUENT DISCOVERY such as shareholders, BOD, third parties)

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OF FACTS (name of audit firm and the Auditor’s Basic Elements of the Introductory
MATERIAL INCONSISTENCIES Uncertainties* personal name of the auditor) Signature Unmodified Report:
(name of entity, FS audited, title of
(Refer to post-audit responsibilities) Paragraph each FS including date covered by
exists when the other information* contradicts the Going Concern** FS, summary of significant
information contained in the audited FS. Other Reporting accounting policies and notes)
Early Application Responsibilities Management’s
Going Concern**of New Adequately (describes responsibility for the
OTHER INFORMATION ACCOMPANYING FS Accounting Standards disclosed in the Responsibility preparation and fair
presentation of FS and for
* PSA 720 states that the auditor has no responsibility to corroborate the other info (such as in annual reports), notes to the FS Auditor’s for the FS design, implementation and
Major Catastrophe Auditor’s
but he should read the other info to determine that it is not materially inconsistent with the FS and whether (placed after Auditor’s Opinion maintenance of IC)
the other information needs to be amended). Subsequent Discovery of Facts Unmodified Opinion Paragraph) Responsibility (stating that the responsibility of the auditor is to express
Opinion with
Emphasis Matter (to give emphasis on an an opinion on the FS, that the audit was conducted in
amendment is Special Purpose FS Paragraph important matter affecting the
accordance with PSA, and to give a general description of
necessary in = Entity
Refuses = QUALIFIED OR
ADVERSE OPINION.
FS or the auditor’s report;
the audit)
the FS, Only if GC uncertainty is adequately disclosed.
these does not negate the
Multiple
uncertainties = OFDISCLAIMER
OPINION. auditor’s unmodified opinion)
amendment is Other Matter paragraph withhold the Not adequately QUALIFIED OR
necessary in = Entity
= indicating the material auditor’s opinion/ Uncertainties* disclosed, = ADVERSE Going Concern**
Refuses inconsistency, OPINION
the FS, engagement
GC assumption ADVERSE
inappropriate and the entity = OPINION
insists to use GC principle