INTERNATIONAL AUDITING STANDARD 700

(MAGAZINE)

THE INDEPENDENT AUDITOR'S REPORT ON A COMPLETE SET OF FINANCIAL STATEMENTS

GENERAL PURPOSE FINANCIAL INSTITUTIONS

Effective for audit reports on financial statements dated on or after December 31

from 2006)

INDEX

Paragraphs
Introduction 1-3
The Auditor's Report on Financial Statements 4 - 15
Elements of the Auditor's Report in an Audit Conducted in Accordance with the ISAs 16 - 57
Auditor's Report 58 - 60
Auditor's Report for Audits Conducted Not Only in Accordance with the ISAs but Also with the
Audit Standards of a Specific Jurisdiction or Country 61 - 66
Unaudited Supplemental Information Presented with Audited Financial Statements 67 - 71
Date of Effectiveness 72

International Standard on Auditing (ISA) 700, “The Independent Auditor's Report On a

Complete Set of Financial Statements for General Purpose" should be read in the context of
Preface to the International Standards on Quality Control, Auditing, and Simplified Examination,
Other Guarantees of Reliability and Related Services, which establishes the application and authority
the ISAs.

Introduction

1. The purpose of this International Standard on Auditing (ISA) is to establish standards and
provide guidance on the independent auditor's report issued as a result of a
audit of a complete set of general-purpose financial statements prepared for
according to a conceptual structure of financial reporting designed to achieve presentation
appropriate. It also provides guidance on the matters that the auditor considers when forming a
opinion on these financial statements. As described in ISA 200 "Objectives and Principles"
General Principles Governing a Financial Statement Audit
General purpose financial statements are prepared in accordance with a conceptual framework.
of financial reporting that is designed to meet the common information needs of a
wide variety of users

2. This ISA addresses the circumstances in which the auditor is in a position to express an opinion.
without reservations and no modification to the auditor's report is required. ISA 701 'Modifications
"to the Independent Auditor's Report" establishes standards and provides guidance on the
modifications to this report regarding an emphasis of matter, a qualified opinion, a
an excuse of opinion, or an opposing opinion.
3. ISA 800 "The Independent Auditor's Report on Audit Engagements with Purpose
Special establishes standards and provides guidance on the form and content of the report of
audit issued as a consequence of an audit of:

(a) A complete set of financial statements prepared in accordance with another

global accounting regime

(b) A component of a complete set of general purpose financial statements

or for a special purpose, such as a unique financial statement, accounts, account elements,
or specific items of a financial statement;

(c) Compliance with contractual agreements; and

(d) Condensed financial statements.

The Auditor's Report on Financial Statements

4. The auditor's report must contain a clear expression of the auditor's opinion on the
financial statements.

5. According to ISA 200, the objective of a financial statement audit is to

to enable the auditor to express an opinion on whether the financial statements are prepared,
in all material respects, in accordance with the applicable financial reporting conceptual framework.

6. Unless a different wording is required by law or regulation, the auditor's opinion

about a complete set of general purpose financial statements, prepared in accordance
with a conceptual framework for financial reporting that is designed to achieve presentation
appropriate (for the purposes of this Standard referred to as 'financial statements'), it is declared that the
financial statements "give a true and fair view" or "are properly
presented, in all material aspects,” according to the conceptual framework of reporting
applicable financial. These phrases "provide a true and fair view" and "are appropriately
"presented in all material aspects," are equivalent. Which of these sentences is used in a given.
Jurisdiction is determined by the laws or regulations governing the audit of financial statements.
in this jurisdiction, or by the practice established in this jurisdiction.

7. In some jurisdictions, the laws or regulations governing the audit of financial statements
Financial statements may prescribe a wording for the auditor's opinion that is different from the phrases.
described in paragraph 6. Although the auditor may be required to use the prescribed wording, the
the responsibilities of the auditor as described in this Standard for forming the opinion remain the
same.

8. When the wording prescribed by law or regulation differs significantly from the phrases of
In paragraph 6, the auditor carefully considers whether there may be a risk that users could
misunderstanding the reliability guarantee obtained in a financial statement audit.
for example, the writing can convey to readers that the auditor is certifying the accuracy of the amounts of
financial statements instead of expressing an opinion on whether the financial statements provide
a true and appropriate image or are appropriately presented, in all aspects
materials. Under such circumstances, the auditor considers whether the risk of misunderstanding can be mitigated
through appropriate explanation in the auditor's report (see ISA 701).

Applicable Conceptual Framework for Financial Reporting

9. The auditor's judgment on whether the financial statements present a true and fair view
appropriate or whether they are appropriately presented, in all material aspects, is done in
context of the conceptual structure of applicable financial reporting. As discussed in ISA 210, 'Terms
of Audit Work", without an acceptable financial report structure, the auditor does not have
convenient criteria for evaluating the entity's financial statements. ISA 200 describes the
responsibility of the auditor in determining whether the financial reporting conceptual framework is acceptable
adopted by management in the preparation of the financial statements.

10. In the case of financial statements that fall within the scope of this ISA, the application of a
conceptual structure of financial reporting determined to be acceptable for financial statements
general-purpose financial results, except in extremely rare circumstances dealt with in the
paragraph 15, in financial statements that achieve appropriate presentation. Although the structure
the conceptual financial reporting may not specify how to account for or disclose all transactions
In events, it normally incorporates sufficient general principles that can serve as a basis.
to develop and apply accounting policies that are consistent with the underlying concepts
the requirements of the conceptual framework. Thus, the conceptual framework of financial reporting provides
a context for the auditor's assessment of the appropriate presentation of the financial statements,
including whether they were prepared and presented in accordance with the specific requirements of the
conceptual structure of financial reporting applicable to certain classes of transactions, balances of
accounts and disclosures.

Forming an Opinion on Financial Statements

11. The auditor must evaluate the conclusions drawn from the audit evidence obtained as the basis for
form an opinion on the financial statements.

12. When forming an opinion on the financial statements, the auditor assesses whether, based on
in the audit evidence obtained, there is a reasonable assurance about whether the statements
financial statements taken as a whole are free from material misstatement. This involves concluding whether it was
obtained appropriate audit evidence sufficient to reduce the risks to an acceptably low level
of the material distortion of the financial statements and the assessment of the effects of distortions
identified but not corrected.

13. To form an opinion on whether the financial statements provide a true image and
appropriate or if they are appropriately presented in all material aspects, in accordance with
the conceptual structure of financial reporting applicable to certain classes of transactions, balances of
accounts and disclosures, involves assessing whether the financial statements have been prepared and presented
in accordance with the specific requirements of the conceptual framework for financial reporting applicable to given
transaction classes, account balances, and disclosures. This assessment includes considering whether, in the context
from the conceptual structure of applicable financial reporting:

(a) The selected and applied accounting policies are consistent with the structure
conceptual of financial reporting and are appropriate in the circumstances;
(b) The accounting estimates made by management are reasonable under the circumstances;

(c) The information presented in the financial statements, including accounting policies, is
relevant, reliable, comparable and understandable; and

Financial statements provide sufficient disclosures to enable users to

understand the effect of transactions and material events on the information transmitted in the
financial statements, for example, the financial position, financial performance, and cash flows
box, in the case of financial statements prepared in accordance with International Standards
Financial Report (IFRSs).

14. To form an opinion on whether the financial statements present a true and fair view
appropriate or are appropriately presented, in all material aspects, in accordance with the
the applicable conceptual structure of financial reporting also involves assessing appropriate presentation
the financial statements. The auditor considers whether the financial statements, after any
adjustments made by management as a result of the audit process are consistent with the
auditor's understanding of the entity and its environment. The auditor considers the presentation,
global structure and content of the financial statements. The auditor also considers whether the
financial statements, including the disclosures in notes, faithfully represent the
transactions and underlying events in a way that provides a true picture and
appropriately of, or present appropriately, in all material aspects, the information
transmitted in the financial statements in the context of the conceptual framework for financial reporting. The
analytical procedures at the end or near the end of the audit help to corroborate the
conclusions drawn during the audit and help reach the overall conclusion regarding the presentation
appropriate financial statements.

Extremely Rare Circumstances when Applying the Conceptual Framework for Financial Reporting
Results in Financial Statements Susceptible to Inducing Error

15. As discussed in ISA 210, the auditor considers the acceptability of the conceptual framework
financial report when considering the acceptance of the work. The application of a conceptual framework.
financial reporting that was determined to be acceptable for financial statements for purpose
it will generally result in financial statements that achieve appropriate presentation.
However, in extremely rare circumstances, the application of a specific requirement contained in a
conceptual structure that was determined to be acceptable for financial statements with purpose
in general can result in financial statements that are likely to mislead
particular circumstances of the entity. Some conceptual frameworks of financial reporting that have been
certain to be acceptable for general purpose financial statements recognize,
implicitly or explicitly, that there are extremely rare circumstances in which it is necessary that the
financial statements deviate from a specific requirement of the conceptual framework in order to
achieve the objective of appropriate presentation of financial statements and provide
guidance on the necessary disclosures. Other conceptual frameworks for financial reporting may
not to provide any guidance on these circumstances even if they are structures
acceptable conceptual frameworks for general purpose financial statements. If the auditor is
under circumstances that lead him to conclude that compliance with a specific requirement results
in financial statements that are likely to be misleading, the auditor considers the
need to modify the auditor's report. The modifications, if any, should be appropriate
The auditor's report will depend on how management addresses the matter in the financial statements.
financial and how the conceptual framework of financial reporting addresses these rare circumstances
(per ISA 701).

Elements of the Auditor's Report in an Audit Conducted in Accordance with International Standards
of the Audit

16. The consistency in the auditor's report, when the audit was conducted in accordance with the ISAs,
contributes to credibility in the global market by making audits more quickly identifiable
which were conducted in accordance with globally recognized standards. It also contributes to
promote the reader's understanding and to identify unusual circumstances when they occur.

17. Paragraphs 18-60 establish the requirements related to the following elements of
auditor's report when the audit was conducted in accordance with the ISAs:

(a) Title;

(b) Recipient;

(c) Introductory paragraph;

(d) Management's responsibility for the financial statements;

(e) Auditor's responsibility;

(f) Auditor's opinion;

(g) Other reporting responsibilities;

(h) Auditor's signature;

(i) Date of the auditor's report; and

Auditor's domicile.

Title

18. The auditor's report must have a title that clearly indicates that it is the report of a
independent auditor.

19. A title indicating the report is the report of an independent auditor, for example,
The "Independent Auditor's Report" asserts that the auditor satisfied all ethical requirements
relevant to independence and consequently distinguishes the auditor's report
regardless of reports issued by others.

Recipient

20. The auditor's report must be addressed as required by the circumstances of the work.

21. National laws or regulations often specify to whom the report should be addressed.
do auditor on general-purpose financial statements in this given jurisdiction. Generally, the
The auditor's report on financial statements for general purposes is addressed to those for whom
the report was prepared, whether many times for the shareholders or for those in charge of governance of
entity whose financial statements are being audited.

Introductory Paragraph

22. The introductory paragraph in the auditor's report should identify the entity whose
financial statements were audited and must declare that the financial statements were
audited. The introductory paragraph must also:

(a) Identify the title of each of the financial statements that comprise the set
complete financial statements;

(b) Refer to the summary of accounting policies and other significant explanatory notes; and

(c) Specify the date and the period covered by the financial statements.

23. This requirement is generally met by stating that the auditor audited the statements.
annexes of the entity, which comprise [indicate the titles of the complete set of statements
financial requirements imposed by the applicable financial reporting conceptual framework, specifying the date and the
period covered by these financial statements] and referring to the summary of the policies
accounting and other significant explanatory notes. Furthermore, when the auditor has
knowledge that the financial statements will be included in a document that contains others
information, such as an annual report, the auditor may consider, if the form of presentation it
allow, identify the page numbers where the financial statements are presented. This
helps readers identify the financial statements referred to in the auditor's report.

24. The auditor's opinion covers the complete set of financial statements as
defined by the conceptual framework of applicable financial reporting. In the case of financial statements
prepared in accordance with IFRSs, this includes: a balance sheet, an income statement, a
demonstration of changes in equity, a cash flow statement, and a summary of
accounting policies and other significant explanatory notes. In some jurisdictions, it may also
additional information to be considered an integral part of the financial statements.

25. In some circumstances, the entity may be required by law or regulation or by standards, or
she can voluntarily choose to present along with the financial statements
supplementary information that is not required by the conceptual framework of financial reporting.
for example, supplementary information can be provided to enhance the user's knowledge
conceptual structure of financial reporting or to provide additional explanation of specific items
of financial statements. Such information is usually presented either in supplementary tables.
in additional notes. The auditor's opinion may or may not cover the supplementary information and is
therefore it is important for the auditor to be satisfied that any supplementary information that is not
is covered by the auditor's opinion and is clearly differentiated as addressed in the paragraphs
67-71.

26. In some circumstances, supplementary information cannot be clearly differentiated.

the financial statements due to their nature and the way they are presented. Such information
supplemental is covered by the auditor's opinion. For example, the auditor's opinion covers notes or
supplementary tables that have cross-references from the financial statements. This
it would also be the case when the notes to the financial statements include an explanation of the
extent to which the financial statements conform to another conceptual framework
financial report.

27. The supplementary information presented as an integral part of the statements

financial matters do not need to be specifically mentioned in the introductory paragraph of the report of
auditor when is it sufficient to refer to the notes in the description of the components of the financial statements
financial in the introductory paragraph.

Management's Responsibility for the Financial Statements

28. The auditor's report must state that management is responsible for the preparation and the
appropriate presentation of financial statements in accordance with the conceptual framework of
applicable financial reporting and that this responsibility includes:

(a) Design, implementation, and maintenance of relevant internal control for preparation and
appropriate presentation of financial statements that are free from material misstatement, whether
due to fraud wants the mistake;

(b) Selection and application of appropriate accounting policies; and

(c) Make reasonable accounting estimates under the circumstances.

29. The financial statements are the management's declarations. The management is responsible for
preparation and appropriate presentation of financial statements in accordance with the framework
conceptual framework for applicable financial reporting. For example, in the case of financial statements
prepared in accordance with IFRSs, management is responsible for the preparation of statements
financial statements that appropriately present the financial position, financial performance, and cash flows
entity's box according to the IFRSs. To address this responsibility, the management
conceives and implements internal control to prevent or detect and correct distortions, whether due to
fraud or error, in order to ensure the reliability of the entity's financial reporting. The preparation of
Financial statements require management to exercise judgment when making accounting estimates.
to be reasonable under the circumstances, as well as to select and apply accounting policies
appropriate. These judgments are made within the context of the applicable financial reporting framework.

30. There may be circumstances in which it is appropriate for the auditor to add to the description of the
management responsibilities of paragraph 28 in order to reflect additional responsibilities that are
relevant to the preparation and presentation of financial statements in the given context
jurisdiction or the nature of the entity.

31. The term management has been used in this ISA to describe those responsible for the preparation and
for the appropriate presentation of the financial statements. Other terms may be appropriate.
depending on the legal conceptual structure in the given jurisdiction. For example, in some jurisdictions, the
appropriate reference may be to those in charge of governance (for example, the directors).

Auditor's Responsibility

32. The auditor's report must state that the auditor's responsibility is to express a
opinion on the financial statements based on the audit.
33. The auditor's report states that the auditor's responsibility is to express an opinion.
about the financial statements based on the audit in order to contrast with the responsibility
by management for the appropriate preparation and presentation of the financial statements.

34. The auditor's report must state that the audit was conducted in accordance with the Standards.
International Auditing Standards. The auditor's report must also explain that these standards require that
the auditor meets the ethical requirements and the auditor plans and executes the audit to obtain assurance
reasonable assurance that the financial statements are free from material misstatement.

35. The reference to the standards used conveys to the reader that the audit was conducted in accordance with
established norms.

36. ISA 200 specifies what is required to conduct an audit in accordance with the ISAs. The
paragraph 14 of that ISA explains that the auditor cannot describe the audit as being conducted
according to the ISAs unless the auditor has fully complied with all relevant ISAs
for the audit.

37. The auditor's report must describe an audit stating that:

(a) An audit involves the execution of procedures to obtain audit evidence regarding the
amounts and disclosures in the financial statements;

The selected procedures depend on the auditor's judgment, including the assessment of
risks of material misstatement of the financial statements, whether due to fraud or error. When doing these
risk assessments, the auditor considers internal control relevant for preparation and presentation
appropriate financial statements of the entity in order to design audit procedures
that are appropriate in the circumstances, but not with the purpose of expressing an opinion about the
effectiveness of the entity's internal control. In circumstances where the auditor also has the
responsibility to express an opinion on the effectiveness of internal control in conjunction with the
audit of the financial statements, the auditor must omit the phrase that the consideration of
internal control by the auditor is not with the purpose of expressing an opinion on the effectiveness of the
internal control; and

(c) An audit also includes assessing the adequacy of the accounting policies used.
reasonableness of the accounting estimates made by management, as well as the overall presentation of the
financial statements.

38. The auditor's report must state that the auditor believes that the audit evidence that the auditor
obtained is sufficient and appropriate to provide a basis for the auditor's opinion.

Auditor's Opinion

39. An unreserved opinion should be expressed when the auditor concludes that the statements
financial statements present a true and fair view or are presented appropriately, in
all material aspects, in accordance with the applicable conceptual framework of financial reporting.

40. When expressing an opinion without reservations, the opinion paragraph of the auditor's report
must declare the auditor's opinion that the financial statements present a true and fair view
appropriate or present appropriately, in all material aspects, according to the
conceptual structure of applicable financial reporting (unless required by law or regulation for the auditor
that a different wording should be used for the opinion, in which case the prescribed wording must be used.

41. When the International Financial Reporting Standards or the International Standards for
Public Sector Accounting should not be used as the conceptual framework for financial reporting, the
reference to the conceptual structure of financial reporting in the drafting of the opinion must identify the
jurisdiction or country of origin of the conceptual structure of financial reporting.

42. The auditor's opinion states that the financial statements present a true and fair view.
appropriate to, or appropriately present, in all material aspects, the information that the
financial statements are designed to convey (which is determined by the structure
conceptual of financial reporting). For example, in the case of financial statements prepared from
According to the IFRSs, the auditor expresses an opinion that the financial statements present a
true and appropriate image of or are appropriately presented, in all aspects
materials, the financial position of the entity referred to at the end of the period and the financial performance and
cash flows of the entity for the period then ended.

43. To inform the reader of the context in which the auditor's opinion is expressed, the auditor's opinion
identify the conceptual structure of financial reporting applicable in which the financial statements
are based. When the conceptual framework of financial reporting is not the IFRSs or the Standards
International Public Sector Accounting Standards (IPSAS), the auditor's opinion identifies the jurisdiction or
country of origin of the applicable financial reporting conceptual framework. The auditor identifies the framework
conceptual framework of financial reporting applicable, in terms such as:

• ... in accordance with the International Financial Reporting Standards

• ... according to the generally accepted accounting principles in Country X ...

44. When the conceptual structure of financial reporting includes legal and regulatory requirements,
the auditor identifies the applicable conceptual framework for financial reporting, in terms such as:

• ... in accordance with International Financial Reporting Standards and the requirements of the Code of
Companies in Country X.

Other Subjects

45. The norms, laws, or generally accepted practices in a jurisdiction may require or allow that
the auditor develops materials that provide additional explanation of the auditor's responsibilities
in the audit of the financial statements or in the respective auditor's report. Such matters may
to be addressed in a separate paragraph following the auditor's opinion.

Other Reporting Responsibilities

46. In some jurisdictions, the auditor may have additional responsibilities to report on
other matters that are supplementary to the auditor's responsibility to express an opinion
about the financial statements. For example, the auditor may be asked to report on certain matters.
that caught the auditor's attention during the audit of the financial statements.
Alternatively, the auditor may be asked to perform and report on specified procedures.
additional, or that expresses an opinion on specific subjects, such as the suitability of books and
accounting records. The auditing standards in the specific jurisdiction or country provide many
times guidance on the auditor's responsibilities regarding specific responsibilities of
relates to this jurisdiction or country.

47. In some cases, relevant standards or laws may require or allow the auditor to report on
these other responsibilities within the auditor's report on the financial statements.
In other cases, the auditor may be required or permitted to report on them in a separate report.

48. When the auditor addresses other reporting responsibilities within the auditor's report on
as financial statements, these other reporting responsibilities should be addressed in a section
separated in the auditor's report after the opinion paragraph.

49. The auditor addresses these other reporting responsibilities in a separate section of the report.
to clearly distinguish them from the auditor's responsibilities for the financial statements and for the
opinion about them.

Auditor's Signature

50. The auditor's report must be signed.

51. The auditor's signature is either in the name of the audit firm, in the personal name of the auditor, or in
name of both, as appropriate for the given jurisdiction. In addition to the auditor's signature, in certain
jurisdictions, the auditor may be required to declare the professional accounting body or the fact that
that the auditor or the firm, as appropriate, has been recognized by the respective authority of
licensing of such jurisdiction.

Audit Report Date

52. The auditor must date the report on the financial statements no earlier than the date on which the
the auditor obtained appropriate and sufficient audit evidence on which to base the opinion on the
financial statements. The appropriate sufficient audit evidence must include evidence that the
the complete set of financial statements of the entity has been prepared and that those with
recognized authorities stated that they take responsibility for them.

53. The date of the auditor's report informs the reader that the auditor considered the effect of
events and transactions that the auditor became aware of and that occurred up to that date.
the auditor's responsibility for events and transactions after the date of the auditor's report is
dealt with in ISA 560, 'Subsequent Events'.

54. Once the auditor's opinion is given on the financial statements and the
financial statements are the responsibility of management, the auditor is not in a position to
to conclude that appropriate and sufficient audit evidence has been obtained until the auditor obtains evidence that
a complete set of financial statements has been prepared and management has accepted it
responsibility for them.

55. In some jurisdictions, the law or regulations identify individuals or bodies (for
for example, the directors) who are responsible for concluding that a complete set has been prepared
financial statements, and specifies the necessary approval process. In such cases, the auditor
obtain proof of this approval before dating the report on the financial statements.
jurisdictions, however, the approval process is not prescribed by law or regulation. In such cases,
the auditor takes into account the procedures that the entity follows in the preparation and finalization of its
financial statements aimed at its management and governance structures in order to identify the
individuals or body with the authority to conclude that the complete set has been prepared
financial statements of the entity, including the respective notes.

56. In some jurisdictions, final approval of the financial statements is required by

shareholders before the financial statements are issued publicly. In these jurisdictions, it is not
necessary for the auditor the final approval by the shareholders to conclude that evidence was obtained
appropriate sufficient audit. The date of approval of the financial statements for the purposes of the ISAs is
the earliest date on which the recognized authority determines that a set was prepared
complete set of financial statements.

Auditor's residence

57. The report must indicate the location in the country or the jurisdiction in which the auditor operates.

Auditor's Report

58. The auditor's report must be in writing.

59. A written report comprises not only reports issued on paper but also those that use a
electronic medium.

60. What follows is an illustration of an auditor's report that incorporates the elements above.
described for an audit of financial statements prepared in accordance with IFRSs
expressing an opinion without reservation. In addition to the audit of the financial statements, the illustration
Assume that the auditor has other reporting responsibilities required by local law.

INDEPENDENT AUDITOR'S REPORT

Appropriate Recipient

Report on Financial Statements

We audited the attached financial statements of ABC Company, which comprise the balance sheet
regarding December 31, 20x1, and the income statement, statement of changes in
equity and statement of cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory notes

Management's Responsibility for Financial Statements

Management is responsible for the preparation and proper presentation of these financial statements.
in accordance with the International Financial Reporting Standards. This responsibility includes: design,
implementation and maintenance of relevant internal control for preparation and presentation
appropriate financial statements that are free from material misstatements, whether due to
fraud or error; selection and application of appropriate accounting policies; and making estimates
accounting methods that are reasonable under the circumstances.

Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based
in our audit. We conducted our audit in accordance with International Standards on Auditing.
These Standards require us to comply with ethical requirements and to plan and perform the audit in order to
obtain reasonable assurance that the financial statements are free from material misstatement.

An audit involves the execution of procedures to obtain audit evidence about the amounts and
disclosures of financial statements. The selected procedures depend on the judgment of the
auditor, including the assessment of the risks of material misstatement of the financial statements, wants
due to fraud wants the error. When making these risk assessments, the auditor considers the internal control
relevant to the proper preparation and presentation of financial statements by the entity to
to end up conceiving audit procedures that are appropriate under the circumstances, but not with the
purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit
also includes the assessment of the adequacy of the accounting policies used and the reasonableness of the
accounting estimates made by management, as well as the assessment of the overall presentation of
financial statements.

We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis
for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view (or
"appropriately present, in all material aspects," the financial position of the Company
ABC on December 31, 20x1, and its financial performance and cash flows for the year
therefore finished in accordance with the International Financial Reporting Standards.

Report on Other Legal and Regulatory Requirements

The form and content of this section of the auditor's report will vary depending on the nature of the others.
auditor's report responsibilities.

[Auditor's signature]

[Audit report date]

[Auditor's domicile]

Audit Report of Audits Conducted in Accordance with ISAs and also with Standards of
Audit of a Specific Jurisdiction or Country

61. The auditor can conduct the audit in accordance with the ISAs and also with the standards of
audit of a specific jurisdiction or country (for the purposes of this ISA referred to as 'standards'
national auditing standards

62. The auditor's report should only indicate the fact that the audit was conducted in accordance with the
International Auditing Standards when the auditor has fully complied with the Standards
International Auditing Standards relevant to auditing.

63. The auditor may indicate that the audit was conducted in accordance with the ISAs and also with the
national auditing standards when the auditor not only complies with each of the relevant ISAs
for the audit but also carry out additional procedures necessary to comply with
relevant standards of this jurisdiction or country. A reference to both the ISAs and
to national auditing standards if there is a conflict between the reporting requirements related to the report
of auditors in the ISAs and the national auditing standards that affect the auditor's opinion or the
the need to include an emphasis paragraph on the matter under the given circumstances. For example,
some national auditing standards prohibit the auditor from including an emphasis of matter paragraph
to highlight a continuity issue, while ISA 701 requires the auditor to
modify the auditor's report by adding a paragraph of emphasis on the matter in such circumstances.
In case of such conflicts, the auditor's report refers only to the auditing standards (whether the ISAs
the relevant national standards) according to which the auditor fulfilled the requirements
of narrative.

64. When the auditor's report indicates both the International Auditing Standards and the
audit standards of a specific jurisdiction or country, the auditor's report must identify the
jurisdiction or country of origin of the audit standards.

65. When the auditor prepares the audit report using the specified model or wording
by law, regulation, or audit standards of the specific jurisdiction or country, the auditor's report only
it should refer to the fact that the audit was conducted in accordance not only with the International Standards
of the audit but also with the auditing standards of the specific jurisdiction or country if the report of
auditor include:

(a) A title;

(b) A recipient, as required by the circumstances of the work;

(c) An introductory paragraph that identifies the audited financial statements;

(d) A description of management's responsibility for the preparation and fair presentation of
financial statements;

(e) A description of the auditor's responsibility to express an opinion on the

demonstrations and the scope of the audit that includes:

(i) A reference to International Auditing Standards and the auditing standards of the jurisdiction or
specific country; and

(ii) A description of the work that an auditor performs in an audit.

(f) An opinion paragraph containing an expression of opinion about the demonstrations.

financial and a reference to the conceptual framework of financial reporting applicable used to prepare
the financial statements (including identification of the country of origin of the conceptual framework of
financial reporting when International Financial Reporting Standards or the Standards are not used
International Public Sector Accounting Standards

(g) The auditor's signature;

(h) The date of the auditor's report; and

(i) The auditor's domicile.

66. The auditor may be required by law or national regulation to use a model or a
writing in the auditor's report that differs from what is described in this ISA. When the differences relate to
just with the model and the wording of the auditor's report, it is considered that the auditor has complied with the
requirements for the ISA report as long as the auditor's report includes at least each of the elements
identified in paragraph 65 - even if using the model and wording specified by laws or
national regulations. Whenever specific requirements in a given jurisdiction do not conflict with the
ISAs, the auditor adopts the model and wording used in this ISA so that users can more
easily recognize the auditor's report as a report on an audit conducted on
agreement with the ISAs.

Supplementary Information not Audited Presented with the Audited Financial Statements

67. The auditor must be satisfied that any supplemental information presented together
with the financial statements that are not covered by the auditor's opinion clearly
differentiated from the audited financial statements.

68. As mentioned in paragraphs 25-26, it may be required of the entity, or management may
decide to include supplementary information along with the financial statements. It is considered
that the auditor's opinion covers the supplementary information that cannot be clearly differentiated
the financial statements due to their nature and the way they are presented. In others
circumstances, however, the laws or regulations may not require that the supplemental information be
audited and management may not ask the auditor to include the supplementary information in the scope of the
audit of financial statements. When the supplementary information is not intended to be
audited, the auditor considers whether the supplementary information is presented in a way that can
to be understood as being covered by the auditor's opinion and, if that happens, requests the management to
change the way the information is presented. The auditor takes into account, for example,
where the unaudited information related to the financial statements and any is presented
supplementary information audited, and if it is clearly labeled as "unaudited". The auditor
ask management to remove any cross-references from the financial statements for
supplementary statements not audited or for unaudited notes because the demarcation between the
audited and unaudited information would not be sufficiently clear. Unaudited notes that are
mixed with audited notes can also be misinterpreted as being audited. By
Consequently, the auditor asks the entity to set the unaudited information outside of the set of
financial statements, or, if that is not possible under the circumstances, at least include the notes
not audited together at the end of the notes required for the financial statements and label them clearly
as unaudited.

69. As noted in paragraph 23, when the auditor is aware that the statements
financial statements will be included in a document that contains other information, the auditor may consider,
if the presentation format allows, the identification in the auditor's report of the page numbers
where the audited financial statements are presented. This helps readers differentiate the
financial statements of other information not covered by the auditor's opinion.

70. If the auditor concludes that the entity's presentation of any supplemental information
unaudited does not sufficiently differentiate from the audited financial statements, the auditor must
explain in the auditor's report that this information was not audited.
71. The fact that supplementary information is not audited does not relieve the auditor of
responsibility to read this information to identify material distortions with the statements
audited financial statements. The auditor's responsibilities regarding supplementary information do not
audited are consistent with those described in ISA 720, "Other Information in Documents that
Include Audited Financial Statements.

Date of Effectiveness

72. This ISA is effective for auditor reports dated on or after December 31, 2006.

Public Sector Perspective

1. Some terms of this ISA such as 'responsible partner for the work' and 'firm' must be read
as referring to their counterparts in the public sector.

2. In the public sector, the legislation governing the audit mandate may specify the model or the
drafts to be used in the auditor's report. When the auditor prepares the auditor's report
using the specified model or wording in such legislation, the auditor's report should only refer to
to the audit conducted in accordance with the ISAs and the legislation governing the audit mandate, if the
the auditor's report should include at least each of the elements specified in items (a) to (j) of
paragraph 65. As discussed in paragraph 6, whenever the legislation governing the mandate of
audit does not conflict with the ISAs, the auditor adopts the model and wording used in this ISA in a way
that readers can more quickly recognize the auditor's report as a report
conducted in accordance with the ISAs.

3. Furthermore, such legislation may specify the responsibilities of management and auditors in
regarding the audit. The descriptions of such responsibilities included in the auditor's report
will need to reflect the requirements of the legislation.