Page 236 - Internal Auditing Standards

Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts

Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with International Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation of the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s

internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as evaluating the
presentation of the fi nancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.
Opinion

In our opinion, the financial statements of CDE Company for the period ended December 31, 20X1 are
prepared, in all material respects, in accordance with XYZ Law of Jurisdiction X.
[Auditor’s signature]

[Date of the auditor’s report]
[Auditor’s address]

17.5 Other Reporting Requirements

In some jurisdictions, the auditor may be required to report on matters in addition to the auditor’s
responsibility under the ISAs, as discussed in the following exhibit.

Exhibit 17.5-1

Discussion

Additional The auditor may be required to comment on matters such as:
Reporting • The adequacy of the entity’s accounting records;
Requirements

• Specific matters if they come to the auditor’s attention during the course of the
audit; and
• Results of performing additional specifi ed procedures.

Report Under To ensure users understand these additional responsibilities, the auditor would
Separate Heading report on them within a separate section in the auditor’s report (e.g., under a new
subheading such as “Report on Other Legal and Regulatory Requirements”).

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