What is the type of auditor report presented

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Reference no: EM131233143

Question 1:

A. Name any THREE types of opinion other than unmodified used in the auditor's report and explain the circumstances in which each is appropriate.

B. Presented below is an extract of auditor's report:

Independent auditor's report

To the managers of ABC Company Ltd

Report on the audit of the financial report


We have audited the financial report of the Company, which comprises the statement of financial position as at 30 June 2016, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the Financial Report, including a summary of significant accounting policies.

In our opinion:

The financial report of ABC Company Ltd is in accordance with the Corporations Act 2001, including:

(i) Giving a true and fair view of the Company's financial position as at 30 June 2016 and of its performance for the year ended on that date and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001

Basis for opinion

We conducted our audit in accordance with Australian Accounting Standards (AASBs standards). We are independent of the Company within the meaning of the Corporations Act 2001 and APES 110 Code of Ethics for Professional Accountants and have fulfilled our other responsibilities under those ethical requirements. We believe that we have obtained ....(1) ....(2) evidence to provide a basis for our opinion.

Responsibilities for the financial report

The shareholder of the Company is responsible for the fair presentation of the financial report in accordance with Australian Accounting Standards and for such internal control as management determines is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

Auditor's responsibilities for the audit of the financial report

The of objectives of our audit are to obtain an absolute level of assurance about whether the financial report as a whole is free from misstatements including material and immaterial misstatements, whether due to fraud or error, and to issue an auditor's report that includes our opinion.


(i) What is the type of auditor's report presented above?

(ii) Identify THREE deficiencies (i.e. Wrong wording) in the auditor's report presented above (Note: there might be more than 3 deficiencies in the report)

(iii) Briefly explain the reason why those identified are deficiencies?

(iv) Fill in the missing words in "highlighted" (1) and (2) contained in section "Basis for opinion" in the auditors' report above. 

Question 2:

A. List THREE types of substantive tests and indicate the difference between a test of control and a substantive test.

B. During the planning stage of the audit of Snowfall Ltd, the auditor has summarised a Table (below) listing some basic information from the financial statement for year ended 30 June 2016 which is being audited.


ACTUAL 2015 $m

DRAFT 2016 $m




Cost of sales



Gross profit



Operating expenses



Profit before interest and taxation












Trade payables



Short-term loan



Reference no: EM131233143

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