(c) Opening introductory paragraph, and
(i) identification of the financial Statement
(ii) A statement of the responsibility of the auditor and the management
(d) Scope paragraph
The members of XYZ Co.
We have audited the accompanying balance sheet of the XYZ company as of December 31, 20×7, and the related profit and Loss statement and cash lows for the year then ended. These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audit. (This is an attempt to educate the readers in order to resolve the expectation gap)
We conducted our audit in accordance with international standards on auditing. Those standards require that we plan and perform audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
FORMING AN OPINION AND REPORTING ON FINANCIAL STATEMENTS (lSA 700)
FORM OF AUDIT REPORT FOR COMPANIES
Rule 17A of the Companies Ordinance 1984 requires that the auditors’ report on the accounts and books of accounts and balance sheet and profit and loss account of a company required by section 255 shall be in FORM 35-A.
Form 35 – A is reproduced as follows: