Acca aa s21 Notes

2. Financial statements
The auditor’s report refers to financial statements and you need to know what these are. They consist 
of the following:
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The statement of financial position (or balance sheet).
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The statement of profit or loss and other comprehensive income.
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The statement of changes in equity.
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The cash flow statement.
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The notes to the financial statements, including significant accounting policies.
A director’s report and chairman’s statement included in an annual report are 
not
part of the financial 
statements. However, the auditor may have reporting responsibilities for such "other information".
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3. Content of an auditor’s report
3.1 The title and addressees: Independent Auditor’s Report
First of all, it is clearly titled ‘Independent Auditors’ Report.’ That should mean that no one has any 
doubt about what this document is. It next states to whom the auditor’s report is addressed - and 
that’s the members (i.e. shareholders) of the company.
3.2 The audit opinion and identification of what’s been audited
The opinion paragraph comes right at the top of the report. This section summarises the financial 
statements that have been audited (as listed in the previous section).
The illustrative report set out in section 5 of this chapter includes an 
unmodified
audit opinion which 
states that the financial statements present fairly, in all material respects), the company's financial 
position, financial performance and cash flows in accordance with International Financial Reporting 
Standards (IFRSs).
As appropriate, depending on the type of opinion given, this paragraph can be named:
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Opinion
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Qualified opinion
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Adverse opinion
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Disclaimer of opinion