Bulletin 2008-7 Audit Reports in the Public Sector - Final

Achambers

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• Publié par: Ziom
• Nombre de lectures: 90
• Langue: English

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Illustrative Auditor’s Reports on Public Sector Financial Statements in the United Kingdom BULLETIN 2008/7 May 2008 The Auditing Practices Board  THE AUDITING PRACTICES BOARD The Auditing Practices Board (APB), which is part of the Financial Reporting Council (FRC), prepares for use within the United Kingdom and Republic of Ireland: • Standards and guidance for auditing; • Standards and guidance for reviews of interim financial information performed by the auditor of the entity; • Standards and guidance for the work of reporting accountants in connection with investment circulars; and • Standards and guidance for auditor’s and reporting accountant’s integrity, objectivity and independence with the objective of enhancing public confidence in the audit process and the quality and relevance of audit services in the public interest. The APB comprises individuals who are not eligible for appointment as company auditors, as well as those who are so eligible. Those who are eligible for appointment as company auditors may not exceed 40% of the APB by number. Neither the APB nor the FRC accepts any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it. The purpose of Bulletins issued by the APB is to provide auditors and, where relevant, reporting accountants, with timely guidance on new and emerging issues. They are persuasive rather than prescriptive. However, they are indicative of good practice, even though they may be developed without the full process of consultation and exposure used for Auditing Standards. For periods ending on or after 31 March 2008, this Bulletin supersedes Bulletin 2006/2. © APB 2008 2 THE AUDITING PRACTICES BOARD ILLUSTRATIVE AUDITOR’S REPORTS ON PUBLIC SECTOR FINANCIAL STATEMENTS IN THE UNITED KINGDOM Contents Page Introduction 3 Example 1: Audit Certificate and Report for a Department preparing a Resource Account 4 Resource Accounts: Table of modifications required to the Auditor’s Certificate and Report in Wales, Scotland and Northern Ireland 7 Example 2: Audit Certificate and Report for an NDPB or Trading Fund preparing an accruals account 9 NDPB Accounts: Table of modifications required to the Auditor’s Certificate and Report in Wales, Scotland and Northern Ireland. 12 Example 3: Audit Report for a local government body in England that does not administer a pension fund 14 Example 4: Audit Report for a local government body in Wales that does not administer a pension fund 16 Example 5: Audit Report for a local government body in Scotland that does not administer a pension fund 18 Example 6: Audit Report for a local government body in Northern Ireland that does not administer a pension fund 20 Example 7: Audit Report for a local government body in England that administers a pension fund 22 Example 8: Audit Report for an NHS Trust in England 25 Example 9: Audit Report for a NHS Primary Care Trust/Strategic Health Authority in England 28 Health Accounts: Table of modifications required to the Auditor’s Certificate and Report in Wales, Scotland and Northern Ireland 31 Example 10: Audit Report for a Probation Board in England and Wales 33 Illustrations of Qualifications and other Modifications to the Auditor’s Reports Arising from the Consideration of Regularity Example 11 - Qualified opinion on the regularity of expenditure and unqualified opinion on the truth and fairness of the accounts 36 Example 12 - Qualified opinion for limitation of scope on regularity in England and the truth and fair37 1 Example 13 - Qualified opinions arising from expenditure in excess of amounts authorized 39 Example 14 - Wording for a Primary Care Trust’s/ Strategic Health Authority’s regularity opinion where the Revenue Resource Limit or the Capital Resource Limit has been breached 41 2 „ „ Bulletin 2008/7 Introduction 1. This Bulletin should be read in conjunction with Practice Note 10 “Audit of financial statements of public sector bodies in the United Kingdom (Revised)” which was issued in January 2006. Paragraph 4 of Practice Note 10 explains what the public sector comprises for the purposes of this Bulletin. 2. The purpose of this Bulletin is to provide illustrative examples of: Unmodified auditor’s reports for audits of financial statements of public sector bodies in the United Kingdom for audits performed in accordance with International Standards on Auditing (UK and Ireland). Auditor’s reports modified for regularity issues. 3. Pages 36-41 provide examples of regularity qualifications. Examples of other types of modifications to the auditor’s report have not been provided in this Bulletin as they would follow the format provided for companies in APB Bulletin 2006/6. 4. Statutory Instrument 2005 No 1011 “The Companies Act 1985 (Operating and Financial Review and Directors’ Report etc) Regulations 1985” amended the Companies Act 1985 so that the auditors must give a positive opinion as to the consistency of the directors’ report with the financial statements. The heads of the national audit agencies have decided to adopt this as best practice where relevant in public sector audit reports. Current reporting frameworks mean that local government auditors do not give a consistency opinion. The main change to this Bulletin is to incorporate this consistency opinion in the auditor’s report for the public sector where relevant. 5. The variations in public sector auditor’s reports largely reflect the differing statutory frameworks and financial reporting requirements that exist across the administrations and sectors. 6. For NHS bodies, the Bulletin contains illustrative auditor’s reports for NHS Trusts and English Strategic Health Authorities/Primary Care Trusts, and an example of a qualified opinion arising from non-compliance with governing authorities at an English SHA/PCT. Modifications necessary to adapt the illustrative auditor’s certificate and report for Wales, Scotland and Northern Ireland are presented in a table. 7. This Bulletin does not contain an example of an illustrative audit report for an NHS Foundation Trust. Auditors of NHS Foundation Trusts are required to prepare an audit report in accordance with ISA (UK and Ireland) 700, as set out in Monitor’s Code of Audit Practice for NHS Foundation Trusts. 3 Bulletin 2008/7 Example 1: Audit Certificate and Report for a Department preparing a 1Resource Account 2THE CERTIFICATE AND REPORT OF THE COMPTROLLER AND AUDITOR GENERAL TO THE HOUSE OF COMMONS I certify that I have audited the financial statements of (name of department) for the year ended [insert date] under the Government Resources and Accounts Act 2000. These comprise the Statement of Parliamentary Supply, the Operating Cost Statement and Statement of Recognised Gains and Losses, the Balance Sheet, the Cash Flow Statement and the Statement of Operating Costs by Departmental Aim and Objectives and the related notes. These financial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Remuneration Report that is described in that report as having been audited. Respective responsibilities of the Accounting Officer and auditor The Accounting Officer is responsible for preparing the Annual Report, which includes the Remuneration Report, and the financial statements in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions made thereunder and for ensuring the regularity of financial transactions. These responsibilities are set out in the Statement of Accounting Officer’s Responsibilities. My responsibility is to audit the financial statements and the part of the remuneration report to be audited in accordance with relevant legal and regulatory requirements, and with International Standards on Auditing (UK and Ireland). I report to you my opinion as to whether the financial statements give a true and fair view and whether the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000. I report to you whether, in my opinion, the 3information which comprises the management commentary [and…(list other elements if appropriate)], included in the Annual Report, is consistent with the financial statements. I also report whether in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. In addition, I report to you if in my opinion the Department has not kept proper accounting records, if I have not received all the information and explanations I require for my audit, or if information specified by HM Treasury regarding remuneration and other transactions is not disclosed. 1 The audit certificate and report of an Executive Agency will generally follow the same form as that of a Department. 2 Where there is a separate C&AG’s report, the words ‘AND REPORT’ should be deleted from the title. 3 The references within the certificate should reflect the naming conventions applied by the audited Department, and must cover the material in paragraphs 7.2.5 to 7.2.19 of the FReM, of which the main element is the management commentary. Where this cross refers to information in other sections of the published document, the consistency opinion must be extended to cover this other information. 4 Bulletin 20