Page 34 - AA Integrated Workbook STUDENT 2018-19

Chapter 34

Auditor reporting

ISA 700 (UK) Forming an Opinion and Reporting on Financial Statements requires
the auditor to report by exception in the auditor’s report of a company disclosing
compliance with the UK Corporate Governance Code where the annual report
includes:

 A statement given by the directors that they consider the annual report and
accounts taken as a whole is fair, balanced and understandable and provides
the information necessary for shareholders to assess the entity’s performance,
business model and strategy, that is inconsistent with the knowledge acquired
by the auditor in the course of performing the audit.

 A section describing the work of the audit committee that does not appropriately
address matters communicated by the auditor to the audit committee.

 An explanation, as to why the annual report does not include such a statement
or section, that is materially inconsistent with the knowledge acquired by the
auditor in the course of performing the audit.

 Other information that, in the auditor’s judgment, contains a material
inconsistency.

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