10.4 Review and Reporting

1.Audit Review and Finalisation

(1) Going Concern

The going concern assumption means that management believes the company will continue in business for the foreseeable future, this period is a minimum of 12 months after the year end.

(2) Subsequent Events
    Subsequent events are events occurring between the date of the financial statements and the date of the auditor's report and facts that become known after the date of the auditor's report.

(3) Written Representations

Written representations are written statements by management provided to the auditor to confirm certain matters or to support other audit evidence.

(4) Overall Review

The auditors must perform and document an overall review of the financial statements by undertaking analytical procedures before they can reach an opinion. It should be carried out by a senior member of the audit team, with appropriate skills and experience.

2. Types of Opinion

(1) Unmodified Opinions

An unmodified opinion is the opinion expressed by the auditor when the auditor concludes that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.

(2) Qualified Opinions

A qualified opinion must be expressed in the auditor's report in the following two situations.

l The auditor concludes that misstatements are material, but not pervasive, to the financial statements.

l The auditor cannot obtain sufficient appropriate audit evidence on which to base the opinion but concludes that the possible effects of undetected misstatements, if any, could be material but not pervasive. The auditor's inability to obtain sufficient appropriate audit evidence is also referred to as a limitation on the scope of the audit

(3) Adverse Opinions

An adverse opinion is expressed when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements are both material and pervasive to the financial statements.

(4) Disclaimers of Opinion

An opinion must be disclaimed when the auditor cannot obtain sufficient appropriate audit evidence on which to base the opinion and concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.
    The opinion must also be disclaimed in situations involving multiple uncertainties when the auditor concludes that, despite having obtained sufficient appropriate audit evidence for the individual uncertainties, it is not possible to form an opinion on the financial statements due to the potential interaction of the uncertainties and their possible cumulative effect on the financial statements.

3. Audit Report

• Title

• Addressee

• Opinion Paragraph

• Basis for Opinion

•  Key Audit Matters

• Other Information

• Responsibilities of Managers & TCWG for Financial Statement

• Auditor's Responsibilities for the Audit of the Financial Statement

• Report on Other Legal and Regulatory Requirements

• Name of the Engagement Partner

• Auditor's Signature

• Auditor’s Address

• Date of the Report