Form of the Statement of Assurance
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Form of the Statement of Assurance

Form of the Statement of Assurance

In the Statement of Assurance the ECA provides an opinion on reliability of the accounts and legality and regularity of underlying transactions.
Financial audit Compliance audit
Reporting
Ref: 18.400

Principles

The auditor should form an
opinion
on the annual accounts and the underlying transactions based on an evaluation of the conclusions drawn from the audit evidence obtained. The auditor should express the opinion through a written report and communicate the key audit matters. In accordance with the Article 287(1) of TFEU, a Statement of Assurance should be produced for audits of the reliability of the accounts and the legality and regularity of the underlying transactions concerning the general EU budget, EDFs, and EU agencies, offices and similar bodies. Each Statement of Assurance should be published in the Official Journal. The term “Statement of Assurance" corresponds to the term “Independent Auditor’s Report" as used in the International Standards on Auditing; however, its scope is broader, due to the inclusion of the legality and regularity aspects.

Instructions

Objectives

The main objectives of the Statement of Assurance are to inform the
discharge authority
whether:

Structure and content

Since the ECA’s Statement of Assurance must be published together with the auditee’s accounts, without the other parts of the annual or Specific Annual Report, the auditor should structure the Statement of Assurance in such a way that it can be read as a stand-alone document. The Statement of Assurance should be confined only to the elements required by auditing standards. The information not specifically required by the standards (e.g. explanatory material and commentary) should be included in other parts of the report (e.g. general introduction, information in support of the Statement of Assurance or specific assessments). The Statement of Assurance should be confined to material appropriate to an independent auditor’s report. The Statement of Assurance should consist of the following sections:

Title

"The ECA’s Statement of Assurance provided to the European Parliament and the Council – Independent Auditor’s Report" should be the official title used.

Addressee(s)

The ECA’s Statement of Assurance should be addressed as required by the circumstances of the audit and the underlying legal basis for the audit. Addressees of ECA’s reports are in most cases the European Parliament and the Council. In the case of certain other EU bodies, offices and agencies, the addressees could also include other supervisory bodies.

Introductory paragraph

The introductory paragraph in the Statement of Assurance serves to highlight the audit subject, and in particular should:
  • identify the entity whose annual accounts and underlying transactions have been audited;
  • state that the annual accounts and the underlying transactions have been audited;
  • identify those parts of the annual accounts and types of underlying transactions which have been audited;
  • refer to the summary of significant accounting policies and other explanatory notes for audits of reliability;
  • specify the date or period of the annual accounts and underlying transactions;
  • include a reference to the legal basis for ECA’s responsibility, which includes auditing and reporting the results of audits. In the case of the consolidated annual accounts of the European Union and the underlying transactions, ECA’s responsibility is defined in the Article 287(1) of the TFEU and the Financial Regulation. Other legal bases, e.g. the regulation establishing the body or the financial regulation of the body, may be relevant for certain other EU bodies, offices and agencies.

Definition of management’s responsibility

This section should be entitled "Management's responsibility". It should include reference to the legal basis for management’s responsibility. In the case of the consolidated annual accounts of the European Union and the underlying transactions, this is the TFEU (Articles 310, 325 and 317) and the Financial Regulation. Other legal bases may be relevant for certain other EU bodies, offices and agencies. For audits of reliability, this section should also include a definition of the applicable financial reporting framework of the auditee. For audits of legality and regularity, this section should also include a definition of the applicable legal and regulatory framework of the auditee. The reliability of the accounts and the legality and regularity of the underlying transactions are two areas of management’s responsibility to be described under this heading.

Definition of the Auditor’s responsibility

This section should be headed "Auditor's responsibility".
The ECA’s responsibility related to the opinion on the reliability of the annual accounts
The Statement of Assurance should describe an audit related to the reliability of the accounts by stating that:
  • an audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts;
  • the procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the annual accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and presentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances; and
  • an audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as the overall presentation of the annual accounts.
The ECA’s responsibility related to the opinion on the legality and regularity of the underlying transactions
The Statement of Assurance should describe an audit of the legality and regularity of the underlying transactions by stating that:
  • an audit involves performing procedures to obtain audit evidence about the legality and regularity of the underlying transactions;
  • the procedures selected depend on the auditor’s judgement, including the assessment of the risks of material non-compliance by the underlying transactions with the requirements of the applicable legal and regulatory framework, whether due to fraud or error. In making those risk assessments, the auditor considers internal control and supervisory and control systems implemented to ensure the legality and regularity of underlying transactions, in order to design audit procedures that are appropriate in the circumstances.
Additional information on the ECA’s responsibility
The Statement of Assurance should state that the ECA believes that the audit evidence, which it has obtained, is sufficient and appropriate to provide a basis for its opinion. The description of the ECA’s responsibility should include a reference to International Standards on Auditing and/or INTOSAI International Auditing Standards and Codes of Ethics.

ECA’s opinions

The Statement of Assurance should include a section with the heading “Opinion on the reliability of the accounts" and a section with the heading “Opinion on the legality and regularity of the underlying transactions". In the case of the general budget of the European Union, the opinion on legality and regularity in the Statement of Assurance is based on the specific assessments for each major cluster, comprising MFF headings, of EU activity.

Key audit matters

The auditor shall describe each key audit matter in a separate section, noting that the auditors do not provide a separate opinion on those matters.

Emphasis of matter

The auditor may use an “Emphasis of Matter” paragraph when, in the auditor’s judgement, it is appropriate to draw users’ attention to a matter presented or disclosed in the annual accounts or related to the legality and regularity of transactions underlying the accounts.

Other matters

The ECA may be required, or may consider it appropriate, to elaborate on matters that provide further explanation of ECA’s responsibilities with respect to the audit of the consolidated annual accounts or the legality and regularity of underlying transactions, or of the Statement of Assurance thereon. Such matters should be addressed under the heading “Other matters", which follows the Opinion sections. The ECA’s responsibilities with regard to reporting on fraud and irregularities, the safeguarding of assets and sound financial management could be described here.

Supplementary and other information

The auditor may need to comment on supplementary and other information which the audited entity presents together with the annual accounts.

Date of Statement of Assurance

The Statement of Assurance should be dated no earlier than the date on which ECA obtained sufficient appropriate evidence on which to base its opinion on the reliability of the consolidated annual accounts and the legality and regularity of the underlying transactions.

Name and signature

The ECA’s Statement of Assurance should be signed by the President on behalf of the ECA.

ECA’s address

The Statement of Assurance should contain the official address of the ECA.

Annual report

Statement of Assurance is the central part of the ECA’s annual report. Detailed instructions on the content and presentation of the annual report are provided by Chamber V.

Related documents

Standards ISSAI 200
ISA 700
Rules Art 287(1) TFEU
Art 258 FR
Last Modified: 14/03/2022 16:20   Tags: