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Principles
When a [link title="compliance" link="%2Faware%2FCA%2FPages%2FConcepts%2FObjectives-of-compliance-audit.aspx" /]
audit is combined with a [link title="financial%20audit" link="%2Faware%2FFA%2FPages%2FConcepts%2FObjectives-of-reliability-audits.aspx" /]
, the conclusion/opinion on the aspect of compliance should be clearly separated from the opinion on the financial statements.
Instructions
Reliability of accounts
The auditor should express an unmodified opinion on the [link title="reliability%20of%20the%20accounts" link="%2Faware%2FFA%2FPages%2FReporting%2FForming-an-opinion-in-financial-audit.aspx" /]
when the auditor concludes that the financial statements have been prepared, in all material respects, in accordance with the [link new-window title="applicable%20financial%20reporting%20framework" link="%2Faware%2FFA%2FPages%2FConcepts%2FFinancial-reporting-framework.aspx" /]
. In order to form that opinion, (s)he shall conclude as to whether (s)he has obtained reasonable assurance about whether the financial statements as a whole are free from [link title="material" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FPlanning%2FMateriality.aspx" /]
misstatement, whether due to fraud or error.
When expressing an unmodified opinion on annual accounts, the ECA’s opinion should use the following phrase:
“In our opinion, the [consolidated annual accounts] of [the auditee] for [the year ended] present fairly, in all material respects, the financial position of [the auditee] as [the date] and the results of their operations, its cash flows, and the changes in net assets for the year then ended, in accordance with the [the applicable financial reporting framework]."
Legality and regularity of the underlying transactions
The auditor should express an unmodified opinion on the [link title="legality%20and%20regularity" link="%2Faware%2FCA%2FPages%2FReporting%2FForming-and-opinion-in-compliance-audit.aspx" /]
of the underlying transactions when the auditor concludes that the underlying transactions comply, in all [link title="material" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FPlanning%2FMateriality.aspx" /]
respects, with the legal and regulatory framework applicable to such transactions.
When expressing an unmodified opinion on the legality and regularity of underlying transactions, the ECA’s opinion should use the following phrase:
“In our opinion, [the transactions underlying the consolidated annual accounts] of [the auditee] for the [period] are legal and regular in all material respects."
Resources
Examples of an unmodified opinion in ECA Statement of Assurance:
Annual report on the implementation of the budget for fiscal year 2018 ([link new-window title="unmodified%20opinion%20on%20reliability%20of%20the%20accounts%20and%20on%20the%20legality%20and%20regularity%20of%20the%20revenue%20transactions" link="https%3A%2F%2Fwww.eca.europa.eu%2FLists%2FECADocuments%2Fannualreports-2018%2Fannualreports-2018_EN.pdf%23page%3D12" icon="external-link"/]
)
[link new-window title="Annual%20report%20on%20EU%20agencies%20for%20the%20financial%20year%202018" link="https%3A%2F%2Fwww.eca.europa.eu%2FLists%2FECADocuments%2FAGENCIES_2018%2FAGENCIES_2018_EN.pdf%23page%3D53" icon="external-link"/]
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