• The auditor must report to members whether the financial report is, in the auditor’s opinion, properly drawn up:
–– in compliance with Australian Accounting Standards –– to give a true and fair view (s. 308(1)).
• If the auditor is not of that opinion, they must state why.
• If, in the auditor’s opinion, the financial report has not been drawn up in accordance with a particular accounting standard, the auditor’s report must give particulars of the quantified financial effect on the financial report of failing to draw it up in accordance with that accounting standard (s. 308(2)).
• The auditor’s report must also describe any defect or irregularity in the financial report
(s. 308(3)(a)) in regard to a deficiency, failure or shortcoming for matters contained in s. 307, on which there is no reporting requirement under s. 308(1). Thus, on an exception basis (meaning they will only report such matters if there is a deficiency, failure or shortcoming), they will include in their report any defects or irregularities for the matters covered in
s. 307(b)–(d) (s. 308(3)(b)).