Acca aaa s21 Notes

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3. The parts of an auditor’s report
Now we are going to look at some of the key parts of an auditor’s report. 
3.1. The title and addressees: Independent Auditor’s Report
First of all, it is clearly titled ‘Independent Auditor’s Report'. That should mean that no one has any 
doubt about what this document is. It next states to whom the 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. 
An unmodified opinion will state that the financial statements give a true and fair view (or present 
fairly, in all material respects), and have been prepared in accordance with International Financial 
Reporting Standards (IFRSs). (The example of the report shown later in this chapter includes an 
unmodified audit opinion. We will see later the various modified opinions that may be expressed if 
the auditors are unable to say without reservation that the financial statements give a true and fair 
view.)
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
The opinion paragraph must:
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Identify the entity whose financial statements have been audited.
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State that the financial statements have been audited.
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Identify the title of each element of the financial statements and the period audited.