Scribd Logo
Upload

Welcome to Scribd!

  • 61 views

    FORMAT-Revised IAR - Qualified

    Uploaded by

    Gier Rizaldo Bulaclac
    1) The auditor issued a qualified opinion on the financial statements of the LGU due to a departure from PPSAS regarding the valuation of inventories. 2) The LGU carried inventories at cost in the statement of financial position rather than at the lower of cost or net realizable value, as required by PPSAS. 3) Had inventories been stated properly, net income would have been reduced by xxx amount due to a required write down of inventories to net realizable value.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    FORMAT-Revised IAR - Qualified

    Uploaded by

    Gier Rizaldo Bulaclac
    61 views2 pages
    1) The auditor issued a qualified opinion on the financial statements of the LGU due to a departure from PPSAS regarding the valuation of inventories. 2) The LGU carried inventories at cost in the statement of financial position rather than at the lower of cost or net realizable value, as required by PPSAS. 3) Had inventories been stated properly, net income would have been reduced by xxx amount due to a required write down of inventories to net realizable value.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) The auditor issued a qualified opinion on the financial statements of the LGU due to a departure from PPSAS regarding the valuation of inventories. 2) The LGU carried inventories at cost in the statement of financial position rather than at the lower of cost or net realizable value, as required by PPSAS. 3) Had inventories been stated properly, net income would have been reduced by xxx amount due to a required write down of inventories to net realizable value.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    61 views2 pages

    FORMAT-Revised IAR - Qualified

    Uploaded by

    Gier Rizaldo Bulaclac
    1) The auditor issued a qualified opinion on the financial statements of the LGU due to a departure from PPSAS regarding the valuation of inventories. 2) The LGU carried inventories at cost in the statement of financial position rather than at the lower of cost or net realizable value, as required by PPSAS. 3) Had inventories been stated properly, net income would have been reduced by xxx amount due to a required write down of inventories to net realizable value.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    Annex B

    INDEPENDENT AUDITOR’S REPORT

    Hon. (Name)
    Title (Municipal/City Mayor, Provincial Governor)
    Local Government Unit

    Qualified Opinion

    We have audited the financial statements of (LGU), which comprise the statement of financial position as at
    December 31, 20XI, and the statement of financial performance, statement of changes in net assets/equity,
    statement of cash flows and statement of comparison of budget and actual amounts for the year then ended, and
    notes to the financial statements, including a summary of significant accounting policies.

    In our opinion, except for the effects of the matter described in the Basis of Qualified Opinion section of our report,
    the accompanying financial statements present fairly in all material respects, the financial position of the (LGU) as
    at December 31, 20XX, and its financial performance , its cash flows, and its statement of comparison of budget
    and actual amounts for the year then ended in accordance with Philippine Public Sector Accounting Standards (PPSAS).

    Basis for Qualified Opinion

    The LGU’s inventories are carried in the statement of financial position at xxx. Management has not stated the
    inventories at the lower of cost and net realizable value but has stated them solely at cost, which constitutes a
    departure from PPSASs. The LGU’s records indicate that, had management stated the inventories at the lower of
    cost and net realizable value, an amount of xxx would have been required to write the inventories down to their net
    realizable value. Accordingly, cost of sales would have been increased by xxx, and the net income would have been
    reduced by xxx, respectively.

    We conduct our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). Our
    responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
    Financial Statements section of our report. We are independent of the agency in accordance with the ethical
    requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical
    responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained in
    sufficient and appropriate to provide a basis for our qualified opinion.

    Key Audit Matters

    Except for the matter described in the Basis for Qualified Opinion section, we have determined that there are no
    other key audit matters to communicate in our report.

    Responsibilities of Management and Those Charged with Governance for the Financial Statements
    Management is responsible for the preparation and fair presentation of these financial statements in accordance
    with Philippine Public Sector Accounting Standards, and for such internal control as management determines is
    necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
    fraud or error.

    Those charged with governance are responsible for overseeing the LGUs financial reporting process.

    Auditor’s Responsibilities for the Audit of the Financial Statements

    Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
    material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
    Reasonable assurance is a high level of assurance, but is not guarantee that an audit conducted in accordance with
    ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
    are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
    economic decisions of users taken on the basis of these financial statements.

    COMMISSION ON AUDIT

    By:

    Authorized Signatory

    Date

    You might also like