The auditor's report to the members of the company must be made in accordance with section 336 Companies Act 2014. Please also see: Auditor's report where certain company types are otherwise exempt from filing Financial Statements with the annual return
The Auditor's Report is required to state:
- whether they have obtained all the information and explanations which, to the best of their knowledge and belief, are necessary for the purpose of their audit,
- whether, in their opinion, the accounting records of the company were sufficient to permit the financial statements to be readily and properly audited,
- whether, in their opinion, information and returns adequate for their audit have been received from branches of the company not visited by them,
- in the case of entity financial statements, whether the company’s balance sheet and except where the exemption under section 304 is availed of, the profit and loss account are in agreement with the accounting records and returns,
- whether, in their opinion, give a true and fair view - in the case of an entity balance sheet, of the assets, liabilities and financial position of the company as at the end of the financial year - in the case of an entity profit and loss account, of the profit or loss of the company for the financial year
- in the case of group financial statements, of the assets, the liabilities, and financial position as at the end of the financial year and of the profit or loss for the financial year of the undertakings included in the consolidation as a whole, so far as concerns the members of the company,
- whether the statutory financial statements have been properly prepared in accordance with the relevant financial reporting framework and, in particular, with the requirements of the Companies Act 2014 (and where applicable, Article 4 of the IAS Regulation)
The statutory auditors report will also state whether, in their opinion, the information given in the director’s report for the financial year is consistent with the statutory Financial Statements.
Under section 336(3a) CA 2014 (as amended by the Companies (Accounting) Act 2017), in the case of a micro company, compliance with the minimum requirements of the Companies Act 2014 is presumed to give a true and fair view.
Also the report shall in relation to each matter referred to in the points above contain a statement or opinion, as the case may be, which shall be either – unqualified or qualified and include a reference to any matters to which the statutory auditors wish to draw attention without qualifying the report. A statement of opinion may be qualified, including to the extent of an adverse opinion or a disclaimer of opinion, where there is a disagreement or limitation in scope of work.
Also under s.336(8)CA 2014 (as amended by s.45 Companies (Accounting) Act 2017), if in the case of any statutory Financial Statements, the requirements of s.305-312 have not been complied with, the statutory auditors must include in their report, so far as they are reasonably able to do so, a statement giving the required particulars. (s.305 - 312 deal with director’s remuneration /interests/ benefits disclosure and with licensed banks disclosures). This does not apply to companies which are exempt from these particular sections.
Under section 336(2), the report should have and introduction that identifies the entity Financial Statements, and where appropriate, the group Financial Statements, that are the subject of the audit and the financial reporting framework that has been applied in their preparation and also a description of the scope of the audit identifying the auditing standards in accordance with which the audit was conducted.
Signing of Statutory Auditor’s Report (s.337 CA 2014)
In accordance with s.337 Companies Act 2014, the copy of the statutory auditors report which is delivered to the Registrar shall state the name of the statutory auditor or auditors and bear the signature (in typeset form per s.347(2)) and the date of signature.
In accordance with SI 312 of 2016 - European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014) Regulations 2016.
- where the auditor is a statutory auditor (a natural person), the report shall be signed by that person or,
- where the auditor is a statutory audit firm, the report shall be signed by:
- the statutory auditor (or, where more than one, each statutory auditor) designated by the statutory audit firm for that particular audit engagement as being primarily responsible for carrying out the statutory audit on behalf of the audit firm,
- in the case of a group audit, at least the statutory auditor (or, where more than one, each statutory auditor) designated by the statutory audit firm as being primarily responsible for carrying out the statutory audit at the level of the group,
in his or her own name, for and on behalf of, the audit firm.
An auditors report which is not typed, signed and dated in accordance with this paragraph will be returned to the presenter for correction in accordance with section 898 of the Companies Act 2014.
The certification of the Financial Statements on the B1 form by the Director and Secretary of the company will include the Auditors Report.
Auditors Report where Financial Statements are abridged
In addition to the auditor’s report to the members a company filing abridged Financial Statements must also file a special auditor’s report to the directors pursuant to s.356(1) Companies Act 2014 for a small company or s.357(2) Companies Act 2014 for a medium company.
The auditor’s report to the directors of a small company is required to state;
We have examined:
- The abridged Financial Statements for the year ended on pages to which the directors of propose to annex to the annual return of the company; and
- The Financial Statements to be laid before the Annual General Meeting which form the basis for those abridged Financial Statements.
The scope of our work for the purpose of this report was limited to confirming that the directors are entitled to annex abridged Financial Statements to the annual return and that those abridged Financial Statements have been properly prepared, pursuant to sections 347/348 Companies Act 2104, from the Financial Statements to be laid before the Annual General Meeting.
In our opinion the directors are entitled under section 352 Companies Act 2014 to annex to the annual return of the company abridged Financial Statements and those abridged Financial Statements have been properly prepared pursuant to the provisions of section 353 of the Act.
For and on behalf of (audit firm) Auditors: ABC & Company Date: DD/MM/YYYY