THE AUDITORS INSTITUTE | FORUM

Archived Forums

When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.

Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.

Want to become a Member?

Join Now

Already a Member?

Disclaimer

The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.

To test this feature, visit your live site.

Peter Morris

Jul 28, 2022

Part A qualification – regarding forming an opinion on the comparatives

in SMSF Technical Forum

Part A qualification – regarding forming an opinion on the comparatives

Recently I was having a discussion with another auditor about the need for a standard Part A qualification when taking over the audit from another auditor.

The previous year has an unqualified audit report with no issues raised in the management letter.

It is a convention to issue a Part A qualification (as follow)

“With respect to the comparatives reported in the financial report of the fund, which was audited by Santa Claus ( previous auditor) per the unqualified audit report dated 25 December 20xx , I have been unable to obtain appropriate audit evidence to form an opinion on the comparatives.”

Doesn’t this give the ATO and their statistics the wrong impression of the audit?

( eg verses where there is real material differences that don't represent the accounts fairly & should have a Part A qualification.)

Does every auditor “paste” in this standard qualification in the year taking over?

Is there anything that you consider “appropriate audit evidence” that would allow you to exclude the qualification – other than redoing the previous year’s audit?

3 answers0 replies

Comments (3)

THE AUDITORS INSTITUTE

Aug 01, 2022

Hi Brian

My view is that you could only rely on the previous auditor's report and state this in the audit report if you reviewed what they had done.

Thanks

SMSF AAA