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AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4800
AG ISA (NZ) 700 (REVISED)THE AUDITOR-GENERAL’S STATEMENT ON
FORMING AN OPINION AND REPORTING ON FINANCIAL AND PERFORMANCE INFORMATION
ContentsPage
Introduction 3 - 4801 Scope of this Statement 3 - 4801 Application 3 - 4801
Objectives 3 - 4801 Definitions 3 - 4802 Requirements 3 - 4802
Presentation of findings arising from the annual audit 3 - 4802 Expression of the opinion 3 - 4802 Use of template audit reports issued by the OAG 3 - 4803 Signing of audit reports 3 - 4803 Dating of audit reports 3 - 4803 Independence and the disclosure of relationships with, or interests in,
the public entity in the audit report 3 - 4803 Audit reports to be referred to the OAG 3 - 4804 Translation of audit reports 3 - 4804 Reporting to the OAG 3 - 4805
Application and other explanatory material 3 - 4805 Presentation of findings arising from the annual audit 3 - 4805 Expression of the opinion 3 - 4805 Use of template audit reports issued by the OAG 3 - 4806 Dating of audit reports 3 - 4806 Independence and the disclosure of relationships with, or interests in,
the public entity in the audit report 3 - 4807 Translation of audit reports 3 - 4808
Appendix 1 – The Auditor-General’s Opinions Review Committee (ORC) 3 -4809 Appendix 2 – Unmodified model audit report for a public entity applying a fair
presentation framework 3 - 4814 Appendix 3 – Unmodified model audit report for a public entity applying a
compliance framework 3 - 4820
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4801
Introduction
Scope of this Statement
1. This Auditor-General’s Auditing Statement:
(a) establishes the Auditor-General’s requirements in relation to ISA (NZ) 700
(Revised): Forming an Opinion and Reporting on Financial Statements (ISA
(NZ) 700);1 and
(b) provides additional guidance to reflect the public sector perspective.
Application
2. Compliance with this Statement is mandatory for Appointed Auditors who carry out
annual audits on behalf of the Auditor-General. This Statement requires compliance
with all of the requirements of ISA (NZ) 700, except to the extent that this Statement
provides otherwise. Where a conflict between this Statement and ISA (NZ) 700
exists, the requirements of this Statement shall prevail.
3. This Statement applies to audits of financial statements and/or performance
information which has been prepared for reporting periods ending on or after 15
December 2016.
4. The Auditor-General determines the standard format and wording for audit reports on
the financial and performance information required to be prepared by public entities
for audit. In doing so, the Auditor-General takes into account the objectives and
requirements of the International Standards on Auditing (New Zealand) that are
relevant to the audits of public entities,2 together with the requirements of the Public
Audit Act 2001, to ensure appropriate reporting to readers.
Objectives
5. The objectives of the Appointed Auditor are to:
(a) form an opinion on the financial and performance information presented by
the entity that is required to be audited, based on an evaluation of the
conclusions drawn from the audit evidence obtained; and
1 The ISA (NZ) auditing standards are scoped so that they apply to audits of “historical financial information”.However, for the purposes of the Auditor-General’s auditing standards and statements, all references to “historical financial information” should be read as the audit of “historical financial and historical performanceinformation”.
2 Paragraph 18 of ISA (NZ) 200.
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4802
(b) report any other material matters in the audit report; and
(c) express that opinion clearly through a written report.
Definitions
6. For the purpose of this Auditor-General’s Auditing Statement the defined terms have
the meanings attributed:
(a) in the Glossary of Terms issued by the New Zealand Auditing and Assurance
Standards Board (the NZAuASB glossary) of the External Reporting Board
(although where a term with a specific meaning in the New Zealand public
sector differs from the NZAuASB glossary, the New Zealand public sector
definition shall prevail); and
(b) in the Auditor-General’s Glossary of Terms.
Requirements
Presentation of findings arising from the annual audit
7. Audit reports issued on behalf of the Auditor-General shall present the findings of the
annual audit at the beginning of the audit report. (See paragraphs A1 – A2)
Expression of the opinion
8. Audit opinions issued by, or on behalf of, the Auditor-General on financial and
performance information presented in accordance with a fair presentation framework,
shall be expressed in the form of a dual opinion that separately opines on:
(a) the fair presentation of the audited material; and
(b) whether the audited material complies with generally accepted accounting
practice in New Zealand and has been prepared in accordance with [the
applicable financial reporting framework]. (See paragraphs A2 – A5)
9. The audit opinion contained in audit reports issued by, or on behalf of, the Auditor-
General on financial and performance information presented in accordance with a fair
presentation framework, shall use the words “present fairly, in all material respects”.
10. Audit opinions issued by, or on behalf of, the Auditor-General on financial and
performance information presented in accordance with a compliance framework (such
as a non-GAAP standard), shall be expressed using the words:
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4803
“In our opinion, the accompanying financial statements and performance information
have been prepared, in all material respects, in accordance with [the applicable
financial reporting framework]” (See paragraph A6)
Use of template audit reports issued by the OAG
11. The Appointed Auditor shall use audit report templates issued by the OAG as the
basis for all audit reports signed on behalf of the Auditor-General. The Appointed
Auditor shall consult with the OAG on any departures (other than those that are trivial
or inconsequential) from the format or style of any audit report template issued by the
OAG. (See paragraph A7 and Appendices 2 and 3)
Signing of audit reports
12. All audit reports, except those audit reports where the Auditor-General directs
otherwise, shall be personally signed by the Appointed Auditor. However, the Auditor-
General reserves the right to sign any audit report after giving due notice to the
Appointed Auditor.
Dating of audit reports
13. In addition to paragraph 49 of ISA (NZ) 700 (Revised), the audit report shall not be
dated before:
(a) the date on which the statement of responsibility or equivalent statement is
signed; or
(b) the date of the written representation, as required by AG ISA (NZ) 580 and
ISA (NZ) 580. (See paragraph A8).
Independence and the disclosure of relationships with, or interests in, the public entity in the audit report
14. The Appointed Auditor shall disclose in the “Independence” section of the audit report
whether their Audit Service Provider (ASP) has any relationship with or interests in
the public entity. (See paragraphs A9 – A12).
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4804
Audit reports to be referred to the OAG (See Appendix 1)
15. The Appointed Auditor shall consult with the Accounting and Auditing Policy team
before issuing an audit report:
(a) if the Appointed Auditor seriously considers issuing an audit report containing:
(i) an emphasis of matter or other matter paragraph in relation to an
uncertainty over the use of the going concern assumption;
(ii) an emphasis of matter or other matter paragraph in relation to a matter of
efficiency and effectiveness, waste, or a lack of probity or financial
prudence;
(iii) a disclaimer of opinion; or
(iv) an adverse opinion.
(b) if the Appointed Auditor seriously considers including an emphasis of matter or
other matter paragraph in that audit report where the OAG has not provided
direction or guidance; or
(c) if there is a technical matter related to that audit report that the Appointed
Auditor is unsure about.
16. The Accounting and Auditing Policy team will request the Appointed Auditor to prepare a
submission to the Auditor-General’s Opinions Review Committee (the ORC) for the
circumstances in paragraph 15 above, unless there is clear precedent supporting the
proposed audit report. (See paragraphs 1.8 and 1.9 of Appendix 1).
Translation of audit reports
Translation of audit reports into M ori
17. is an official language of New Zealand. An audit report in M ori shall be
provided by the Appointed Auditor if requested by the entity’s management. (See
paragraphs A13 – A15)
18. If an audit report in English shall
also be provided.
Translation of audit reports into another language
19. If the Appointed Auditor is requested to provide an audit report in a language that is
not an official language of New Zealand (such as Niuean or Tokelaun), they shall
contact the OAG for a translated audit report if that is deemed necessary.
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4805
20. If an Appointed Auditor issues an audit report in a language other than English, an
audit report in English shall also be provided.
Reporting to the OAG
21. The Appointed Auditor shall forward to the OAG a copy of all audit reports issued, in
keeping with the requirements set out in AG-1: Reporting to the OAG.
***
Application and other explanatory material
Presentation of findings arising from the annual audit (See paragraph 7)
A1. Paragraph 43 of ISA (NZ) 700 (Revised) requires the auditor’s report to clearly
separate the results of the “audit of the financial statements and performance
information” from the auditor’s findings on “other legal and regulatory requirements”.
Under paragraph 43, the auditor’s findings on “other legal and regulatory
requirements” are required to be reported in a separate section of the auditor’s report
following the components of the auditor’s report on the “audit of the financial
statements and performance information”. The Auditor-General has departed from the
requirements of paragraph 43 of ISA (NZ) 700 (Revised) by requiring all findings
arising from the audit to be reported at the beginning of the audit report. This means
that auditors’ reports issued by, or on behalf of, the Auditor-General will report the
auditor’s opinion at the beginning of the audit report together with any other material
findings arising from the annual audit. The findings will be categorised under separate
sub-headings depending on their nature at the beginning of the auditor’s report.
A2. The Auditor-General presents the auditor’s opinion, and other findings arising from
the audit, at the beginning of the audit report because this is the information that is of
most importance to the reader of the auditor’s report.
Expression of the opinion (See paragraphs 8 – 10)
A3. Paragraph 25 of ISA (NZ) 700 (Revised) requires the auditor’s opinion on financial
statements prepared in accordance with a fair presentation framework to use one of
the following phrases, which are regarded as being equivalent:
(a) In our opinion, the accompanying financial statements present fairly, in all
material respects, […] in accordance with [the applicable financial reporting
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4806
framework]; or
(b) In our opinion, the accompanying financial statements give a true and fair
view of […] in accordance with [the applicable financial reporting framework].
A4. The Auditor-General has departed from the requirements of paragraph 25 of ISA (NZ)
700 (Revised) by requiring audit opinions issued by, or on behalf of, the Auditor-
General on financial and performance information presented in accordance with a fair
presentation framework to be expressed in the form of a dual opinion. The dual
opinion separately opines on:
(a) the fair presentation of the audited material; and
(b) whether the audited material complies with generally accepted accounting
practice in New Zealand and has been prepared in accordance with [the
applicable financial reporting framework].
A5. The Auditor-General has adopted the dual opinion approach because:
(a) preparation of the financial statements and performance information in
accordance with [the applicable financial reporting framework] does not
automatically mean that the audited information is fairly presented; and
(b) [the applicable financial reporting framework] does not adequately address
some important aspects of financial statements and performance information in
the public sector. The most prominent omission is in the area of performance
reporting.
A6. An example of a compliance framework in New Zealand is “Public Benefit Entity
Simple Format Reporting – Cash (Public Sector)”.
Use of template audit reports issued by the OAG (See paragraph 11)
A7. Example audit reports are provided in this statement, AG ISA (NZ) 705 (Revised), AG
ISA (NZ) 706 (Revised), on the Auditor’s Homepage, and in other directions issued
by the OAG from time to time.
Dating of audit reports (See paragraph 13)
A8. The financial and performance information on which the Appointed Auditor has issued
the audit report may be included in a subsequently published annual report.
Sometimes the annual report will be formally approved after the date that the financial
and performance information was approved. The date of the audit report does not
normally need to be changed solely because the date that the annual report was
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4807
approved is after the date that the financial and performance information was
approved.
Independence and the disclosure of relationships with, or interests in, the public entity in the audit report (See paragraph 14)
A9. Where the ASP does not have a relationship with, or interests in, the entity (other than
as auditor) the audit report should include a disclosure in the Independence section
that states:
“We are independent of the [entity type] in accordance with the independence
requirements of the Auditor-General’s Auditing Standards, which incorporate the
independence requirements of Professional and Ethical Standard 1 (Revised): Code of
Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance
Standards Board.
Other than the audit, we have no relationship with, or interests in, the [entity type].”
A10. AG PES 1 (Revised) permits the Appointed Auditor to distinguish between assurance
engagements and other engagements when reporting any “other” work in the audit
report. Appointed Auditors are requested to pay particular attention to the disclosures
made by the public entity in the note to the accounts that discloses the fees paid to
the auditor. The note is required to fully describe the nature of the other services
carried out by the ASP. Ideally the disclosure should separately distinguish fees
earned from assurance engagements from fees earned from non-assurance
engagements.
A11. Whether or not an Appointed Auditor makes a distinction between assurance work
and non-assurance work in the audit report is at their discretion. If the ASP has
carried out engagements for the entity in addition to the annual audit, and the
Appointed Auditor decides not to distinguish between assurance engagements and
non-assurance engagements in the audit report, the audit report may simply state:
“In addition to the audit, we have carried out engagements in the areas of [insert
description of engagements], which are compatible with those independence
requirements. Other than the audit and these engagements, we have no relationship
with, or interests in, the [entity type].”
A12. If the Appointed Auditor wishes to distinguish between assurance and non-assurance
engagements in the audit report, they should report this using the following reporting
format:
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4808
“In addition to the audit, we have carried out an assurance engagement in the area of
[insert description of engagement]. We have also carried out a non-assurance
engagement in the area of [insert description of engagement]. These engagements
are compatible with those independence requirements. Other than the audit and
these engagements, we have no relationship with, or interests in, the [entity type].”
Translation of audit reports
Translation of audit reports into M ori (See paragraph 17)
A13. The M ori Language Act 1987 established M ori as an official language of New
Zealand. Although the M ori Language Act 1987 enhances and promotes the use of
M ori, it does not require documents and reports to be written in M ori. If the annual
written
A14. Some public entities may request the audit report to be issued in M ori. A M ori
translation of the audit report can be provided by the OAG on request.
A15. The Auditor-General provides practical support where an entity requires an audit
report in M ori. M ori translations of standard unqualified audit reports are included in
some sections of the Auditors’ Homepage. Where a standard audit report in M ori is
not provided by the OAG, or the wording is “non-standard” (that is, it includes
additional wording such as an emphasis of matter paragraph or an other matter
paragraph or is modified), the Accounting and Auditing Policy Group will arrange for
the M ori translation to be completed and will meet the costs of the translation.
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4809
Appendix 1 – The Auditor-General’s Opinions Review Committee (ORC)
1.1 The objectives of the Auditor-General’s ORC are to:
- manage audit risk;
- provide assurance as to the consistency of non-standard audit reports; and
- ensure a consistent approach to major accounting and auditing policy issues.
Membership of the ORC
1.2 The ORC comprises the following members:
- the Assistant Auditor-General – Accounting and Auditing Policy as Chair;
- the Auditor-General;
- the relevant Sector Manager; and
- the Assistant Auditor-General – Legal.
1.3 A designated representative can be substituted for any of the above members.
1.4 The ORC will be convened as and when required by the Assistant Auditor-General –
Accounting and Auditing Policy. The Appointed Auditor may be asked to attend or be
available.
1.5 A quorum comprises the Assistant Auditor-General – Accounting and Auditing Policy,
the Auditor-General, the Assistant Auditor-General – Legal, and the relevant Sector
Manager.
Appointed Auditor procedures
1.6 It is preferable that issues be referred to the ORC as early as possible. This may be
before the financial and performance information is prepared for audit; for example,
an issue may become apparent at the planning stage.
1.7 If the Appointed Auditor is uncertain as to whether or not a matter should be referred
to the ORC, the Appointed Auditor should approach the Accounting and Auditing
Policy Group for advice.
1.8 The following information shall be submitted by the Appointed Auditor to the ORC at
least three working days before a decision is required:
- ORC checklist (see the end of this Appendix). Until all items required by
the ORC are received by the Accounting and Auditing Policy Group, the
submission will not be considered.
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4810
- A copy of the financial and performance information for annual auditthat has been audited (or is required to be audited). If the financial and
performance information for annual audit is not available, the latest available
information should be provided to enable the issue to be considered in
perspective.
- Outline of the issue(s) that may require a non-standard audit report. If
there is more than one issue, each issue should be addressed separately,
including the background, audit concerns, and the effect on the financial and
performance information.
- Technical support for the Appointed Auditor’s opinion. Technical support
includes financial reporting and auditing standards, other guidance issued by
relevant statutory and professional bodies, direction and advice from the
OAG, legislation, and any other relevant technical guidance as appropriate.
- The entity's view on the issue(s). The issue(s) and the potential effect on
the audit report shall be discussed, where appropriate, with the entity (at no
lower than chief executive level), and its position shall be clearly documented.
If the entity disagrees with the Appointed Auditor’s opinion, the rationale and
any technical support for the entity's view shall be provided. The onus is on
the entity to produce whatever technical support it believes is necessary to
justify its position. This support may range from seeking an opinion from its
own advisors to the Appointed Auditor simply recording (and considering the
reasonableness of) the entity's rationale. The Auditor-General does not
require the entity to obtain and pay for technical advice to support its position.
- A copy of the recommended audit report.
1.9 If the Appointed Auditor has seriously considered the validity of the going concern
assumption, the following information (in addition to the information specified above)
shall be provided in the Appointed Auditor’s submission to the ORC:
- consideration of the requirements of AG ISA (NZ) 570 (Revised);
- a budget for the next year;
- year-to-date financial and performance information;
- analysis of the entity’s working capital position and its ability to meet its
obligations as they fall due (this will normally include projected cash flow
information); and
- any other information relevant to the assessment of the going concern
assumption (for example, in the case of schools, historical and projected roll
information).
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4811
Procedures within the OAG
1.10 The ORC submission shall be referred to a member of the Accounting and Auditing
Policy Group, who will be responsible for checking for precedents, researching the
technical issues, and preparing a "technical report" for the ORC.
1.11 The ORC shall meet, discuss the submission and technical report, and reach and
document a consensus of opinion. This will usually be done within three days of
having received the complete ORC submission. If a consensus is not reached, then
the Auditor-General shall decide.
1.12 The ORC may, in addition to determining the wording of the audit report, decide to
carry out any one or any combination of the following:
- request the Appointed Auditor to include a comment in the management
letter;
- raise the issue in a letter from the Sector Manager or Auditor-General to the
governing body;
- inform any Responsible Minister, Ministry, or department of the issue;
- inform any other body (for example, a regulator) as appropriate; and
- report to Parliament.
The above list is not definitive. It indicates the types of action beyond the audit report that
the ORC may take in relation to audit findings. Other action shall only be taken after
consultation with the Appointed Auditor.
Notification of decisions to the Appointed Auditor
1.13 The Appointed Auditor will usually be advised in writing of the ORC's decision. If the
ORC’s decision differs from the Appointed Auditor’s recommendation, an explanation
and reasons will be given.
1.14 If an issue is of wider application, a general policy directive may be provided to the
Appointed Auditor and other parties.
1.15 Where the Appointed Auditor disagrees with the decision made by the ORC and is
unwilling to sign the audit report, the Appointed Auditor shall advise the Accounting
and Auditing Policy Group. The report shall then be signed by the Auditor-General or
a designated representative. This situation is highly unusual, and every effort will be
made to reconcile the positions of the Appointed Auditor and the ORC before such
action is taken.
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4812
1.16 The Auditor-General accepts full responsibility for any implications that may arise on
those matters reflected in audit reports signed by the Auditor-General (or a
designated representative) that depart from the audit report recommended by the
Appointed Auditor.
AG ISA (NZ) 700 (Revised) Forming and reporting an opinion
Issued 03/17 Office of the Auditor-General 3 - 4813
OAG ORC CHECKLIST
Public entity Name
Balance Date
Information included in submission to ORC Included
For all submissions to the ORC:
Copy of financial and performance information (including accounting policies
and notes).
Yes No
Outline of the issue(s). Yes No
Reference to technical support (that is, the appropriate financial reporting and
auditing standards).
Yes No
View of the entity on the issue and the proposed audit report. Yes No
Copy of the recommended audit report. Yes No
For submissions with issues of going concern
A budget for the next year. Yes No
Year-to-date financial and performance information. Yes No
Analysis of working capital position and ability to meet obligations as they fall
due. (This should include projected cash flow information.)
Yes No
Any other relevant details (for example, in the case of schools, historical and
projected roll information).
Yes No
Copy of the recommended audit report on summary financial and
performance information?
Yes No
Appointed Auditor
Date
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olog
y us
ed to
des
crib
e th
e ac
coun
tabi
lity
stat
emen
ts s
hall
be th
e sa
me
as th
at u
sed
by th
e pu
blic
ent
ity p
rovi
ded
itap
prop
riate
ly d
escr
ibes
the
mat
eria
l tha
t has
bee
n au
dite
d.
The
bala
nce
date
is n
orm
ally
det
erm
ined
by
legi
slat
ion
or b
y th
e go
vern
ing
body
with
in th
e co
nstra
ints
of
any
legi
slat
ion.
The
Audi
tor-G
ener
al is
the
audi
tor o
f [N
ame
of E
ntity
](th
e [e
ntity
type
]). T
he A
udito
r-Gen
eral
ha
s ap
poin
ted
me,
[Nam
e of
App
oint
ed A
udito
r], u
sing
the
staf
f and
reso
urce
s of
[Nam
e of
Au
ditin
g Fi
rm],
to c
arry
out
the
audi
t of t
he fi
nanc
ial s
tate
men
tsan
d st
atem
ent o
fper
form
ance
of th
e [e
ntity
type
]on
his
beha
lf.
The
Pub
lic A
udit
Act
200
1 (s
ectio
n 32
) dea
ls w
ith th
e ap
poin
tmen
t of a
udito
rs. T
he A
udito
r-G
ener
al
may
from
tim
e to
tim
e ap
poin
t –in
writ
ing
–a
suita
ble
pers
on o
r bod
y to
act
as
an a
udito
r on
the
Aud
itor-G
ener
al’s
beh
alf.
Opi
nion
Par
agra
ph 2
3 of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
at th
e au
dito
r’s re
port
shal
l inc
lude
the
audi
tor’s
op
inio
n, a
nd s
hall
have
the
head
ing
“Opi
nion
”.
We
have
aud
ited:
-th
e fin
anci
al s
tate
men
ts o
f the
[ent
ity ty
pe] o
n pa
ges
[…] t
o […
], th
at c
ompr
ise3
the
[sta
tem
ent o
f fin
anci
al p
ositi
on]a
s at
[DD
MM
20XX
],th
e [s
tate
men
t of c
ompr
ehen
sive
Par
agra
ph 2
4 of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
at th
e O
pini
on s
ectio
n of
the
audi
tor’s
repo
rt sh
all a
lso:
-id
entif
y th
e en
tity
who
se fi
nanc
ial s
tate
men
ts h
ave
been
aud
ited;
-st
ate
that
the
finan
cial
sta
tem
ents
hav
e be
en a
udite
d;
3E
nsur
e th
at th
e na
mes
that
are
use
d in
the
finan
cial
sta
tem
ents
and
perfo
rman
ce in
form
atio
n ar
e re
plic
ated
in th
e au
dit r
epor
t.
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-481
5
inco
me,
sta
tem
ent o
f cha
nges
in e
quity
and
sta
tem
ent o
f cas
h flo
ws]
for t
he y
ear e
nded
on
that
dat
e,an
d[th
e no
tes
to th
e fin
anci
al s
tate
men
ts th
at in
clud
e ac
coun
ting
polic
ies
and
othe
r exp
lana
tory
info
rmat
ion]
; and
-th
e st
atem
ent o
fper
form
ance
3of
the
[ent
ity ty
pe] o
n pa
ges
[…] t
o […
].
-id
entif
y th
e tit
le o
f eac
h st
atem
ent t
hat c
ompr
ises
the
finan
cial
sta
tem
ents
;-
refe
r to
the
note
s, in
clud
ing
the
sum
mar
y of
sig
nific
ant a
ccou
ntin
g po
licie
s; a
nd-
spec
ify th
e da
te o
r per
iod
cove
red
by e
ach
finan
cial
sta
tem
ent c
ompr
isin
g th
e fin
anci
al
stat
emen
ts.
For t
he re
ason
s se
t out
in p
arag
raph
s A
1 an
d A
2,th
e re
sults
of t
he a
udit
of th
e pe
rform
ance
in
form
atio
n ar
e in
clud
ed in
the
Opi
nion
sec
tion
of th
e au
dito
r’s re
port.
Iden
tific
atio
n of
aud
ited
info
rmat
ion
by p
age
num
ber w
ill as
sist
read
ers
to id
entif
y th
e in
form
atio
n to
w
hich
the
audi
t rep
ort r
efer
s.
In o
ur o
pini
on:
-th
e fin
anci
al s
tate
men
ts o
f the
[ent
ity ty
pe]o
n pa
ges
[…] t
o […
]:
-pr
esen
t fai
rly, i
n al
l mat
eria
l res
pect
s:
-its
fina
ncia
l pos
ition
as
at [D
DM
M 2
0XX
]; an
d
-its
fina
ncia
l per
form
ance
and
cas
h flo
ws
for t
he y
ear t
hen
ende
d;
-co
mpl
y w
ith g
ener
ally
acc
epte
d ac
coun
ting
prac
tice
in N
ew Z
eala
nd in
ac
cord
ance
with
[the
app
licab
le fi
nanc
ial r
epor
ting
fram
ewor
k].
A “d
ual”
opin
ion
is in
clud
ed in
aud
it re
ports
issu
ed b
y, o
r on
beha
lf of
, the
Aud
itor-G
ener
al. R
efer
to
para
grap
hs A
3 to
A5
of th
is s
tate
men
t for
the
reas
ons
for i
nclu
ding
the
dual
opi
nion
.
-th
e st
atem
ent o
f per
form
ance
of t
he [e
ntity
type
]on
page
s […
] to
[…]:
-pr
esen
ts fa
irly,
in a
ll m
ater
ial r
espe
cts,
the
[ent
ity ty
pe]’s
per
form
ance
fo
r the
yea
r end
ed [D
DM
M 2
0XX]
, inc
ludi
ng:
-its
per
form
ance
ach
ieve
men
ts a
s co
mpa
red
with
fore
cast
s in
clud
ed in
the
stat
emen
t of p
erfo
rman
ce e
xpec
tatio
ns fo
r the
fin
anci
al y
ear;
and
-its
act
ual r
even
ue a
nd e
xpen
ses
as c
ompa
red
with
the
fore
cast
s in
clud
ed in
the
stat
emen
t of p
erfo
rman
ce
expe
ctat
ions
for t
he fi
nanc
ial y
ear.
-co
mpl
ies
with
gen
eral
ly a
ccep
ted
acco
untin
g pr
actic
e in
New
Zea
land
.
The
audi
t opi
nion
on
the
perfo
rman
ce in
form
atio
n sh
all b
e ex
pres
sed
usin
g th
e sa
me
term
s us
ed to
ex
pres
s th
e op
inio
n on
the
finan
cial
sta
tem
ents
. The
term
“pre
sent
fairl
y, in
all
mat
eria
l res
pect
s” is
us
ed w
hen
expr
essi
ng th
e op
inio
ns o
n bo
th th
e fin
anci
al s
tate
men
ts a
nd o
nth
e pe
rform
ance
in
form
atio
n.
Our
aud
it w
as c
ompl
eted
on
[Dat
e]. T
his
is th
e da
te a
t whi
ch o
ur o
pini
on is
exp
ress
ed.
In a
dditi
on to
par
agra
ph 4
9 of
ISA
(NZ)
700
(Rev
ised
), th
e au
dit r
epor
t sha
ll no
t be
date
d be
fore
:-
the
date
on
whi
ch th
e st
atem
ent o
f res
pons
ibilit
y or
equ
ival
ent s
tate
men
t is
sign
ed; o
r-
the
date
of t
he w
ritte
n re
pres
enta
tion,
as
requ
ired
by A
G IS
A (N
Z) 5
80 a
nd IS
A (N
Z) 5
80.
The
Appo
inte
d Au
dito
r, in
nor
mal
circ
umst
ance
s, s
hall
not s
ign
and
date
the
audi
t rep
ort u
ntil
all o
ther
in
form
atio
n (o
ther
than
the
audi
ted
finan
cial
and
per
form
ance
info
rmat
ion)
that
will
be in
clud
ed in
the
entit
y’s
annu
al re
port
has
been
rece
ived
and
con
side
red
by th
e au
dito
r in
acco
rdan
ce w
ith IS
A (N
Z)
720
(Rev
ised
).
The
basi
s fo
rour
opi
nion
is e
xpla
ined
bel
ow. I
n ad
ditio
n, w
e ou
tline
the
resp
onsi
bilit
ies
of th
e Au
dit r
epor
ts is
sued
by,
or o
n be
half
of, t
he A
udito
r-Gen
eral
sha
ll in
clud
e a
sepa
rate
sec
tion
unde
r the
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-481
6
[Gov
erni
ng b
ody]
and
our
resp
onsi
bilit
ies
rela
ting
to th
e fin
anci
al s
tate
men
ts a
nd th
e st
atem
ent
of p
erfo
rman
ce, w
e co
mm
ent o
n ot
her i
nfor
mat
ion,
and
we
expl
ain
our i
ndep
ende
nce.
head
ing
“Inde
pend
ence
”. Th
is is
a d
epar
ture
from
par
agra
phs
28(c
), N
Z28(
c), N
Z28.
1,an
dN
Z40(
b)(1
) of I
SA (N
Z) 7
00 (R
evis
ed) t
hat r
equi
re s
tate
men
ts a
bout
the
audi
tor’s
inde
pend
ence
to b
e in
clud
ed u
nder
the
head
ings
“Bas
is fo
r Opi
nion
” and
“Aud
itor’s
Res
pons
ibilit
ies
for t
he A
udit
of th
e Fi
nanc
ial S
tate
men
ts”.
The
Audi
tor-G
ener
al is
spe
cific
ally
requ
ired
to a
ct in
depe
nden
tly u
nder
sec
tion
9 of
the
Publ
ic A
udit
Act 2
001.
The
hei
ghte
ned
expe
ctat
ion
that
the
Audi
tor-G
ener
al m
ust a
ct, a
nd b
e se
en to
act
, in
depe
nden
tly, c
ombi
ned
with
the
reco
gniti
on th
at in
depe
nden
ce is
fund
amen
tal t
o th
e Au
dito
r-G
ener
al h
as le
d th
e Au
dito
r-Gen
eral
to ra
isin
g th
e pr
omin
ence
of i
ndep
ende
nce
by in
clud
ing
a se
para
te s
ectio
n un
der t
he h
eadi
ng “I
ndep
ende
nce”
.
Bas
is fo
ropi
nion
We
carri
ed o
utou
r aud
it in
acc
orda
nce
with
the
Audi
tor-G
ener
al’s
Aud
iting
Sta
ndar
ds,w
hich
in
corp
orat
e th
ePr
ofes
sion
al a
nd E
thic
al S
tand
ards
and
the
Inte
rnat
iona
l Sta
ndar
ds o
n Au
ditin
g (N
ew Z
eala
nd)i
ssue
d by
the
New
Zea
land
Aud
iting
and
Ass
uran
ce S
tand
ards
Boa
rd. O
ur
resp
onsi
bilit
ies
unde
r tho
se s
tand
ards
are
furth
er d
escr
ibed
in th
e R
espo
nsib
ilitie
s of
the
audi
tor
sect
ion
of o
ur re
port.
We
have
fulfi
lled
our r
espo
nsib
ilitie
s in
acc
orda
nce
with
the
Audi
tor-G
ener
al’s
Aud
iting
St
anda
rds.
We
belie
ve th
at th
e au
dit e
vide
nce
we
have
obt
aine
d is
suf
ficie
nt a
nd a
ppro
pria
te to
pro
vide
a
basi
s fo
r our
opi
nion
.
The
Basi
s fo
r Opi
nion
sec
tion
com
plie
s w
ith th
e re
quire
men
ts o
f par
agra
ph 2
8(a)
, (b)
, and
(d) o
f ISA
(N
Z) 7
00 (R
evis
ed).
This
sec
tion
also
com
plie
s w
ith th
e re
quire
men
t in
para
grap
h 28
(c) o
f ISA
(NZ)
70
0 (R
evis
ed) f
or th
e au
dito
r to
stat
e th
at th
ey h
ave
fulfi
lled
thei
r oth
er e
thic
al re
spon
sibi
litie
s (in
ad
ditio
n to
the
inde
pend
ence
requ
irem
ents
) und
er th
e re
leva
nt e
thic
al re
quire
men
ts. B
ecau
se
asse
rtion
of c
ompl
ianc
e w
ith th
e au
dito
r’s in
depe
nden
ce re
quire
men
ts is
mad
e un
der t
he
“Inde
pend
ence
” hea
ding
of t
he a
udit
repo
rt, th
e re
quire
men
t for
the
audi
tor t
o as
sert
com
plia
nce
with
th
eir o
ther
eth
ical
resp
onsi
bilit
ies
is n
eede
d. T
his
requ
irem
ent i
s en
com
pass
ed in
the
stat
emen
t “W
e ha
ve fu
lfille
d ou
r res
pons
ibilit
ies
in a
ccor
danc
e w
ith th
e Au
dito
r-Gen
eral
’s A
uditi
ng S
tand
ards
” whi
ch
enco
mpa
sses
the
audi
tor’s
oth
er e
thic
al re
spon
sibi
litie
s.
The
requ
ired
stat
emen
ts a
bout
inde
pend
ence
und
er p
arag
raph
s 28
(c),
NZ2
8(c)
,and
NZ2
8.1
have
be
en in
clud
ed u
nder
a s
epar
ate
Inde
pend
ence
hea
ding
.
Res
pons
ibili
ties
of th
e [G
over
ning
bod
y]fo
r the
fina
ncia
l sta
tem
ents
and
the
stat
emen
t of
per
form
ance
The
[Gov
erni
ng b
ody]
is re
spon
sibl
e on
beh
alf o
f the
[ent
ity ty
pe]f
or p
repa
ring
finan
cial
st
atem
ents
and
a st
atem
ent o
f per
form
ance
that
are
fairl
ypr
esen
ted
and
that
com
ply
with
ge
nera
lly a
ccep
ted
acco
untin
g pr
actic
e in
New
Zea
land
.
The
[Gov
erni
ng b
ody]
is re
spon
sibl
e fo
r suc
h in
tern
al c
ontro
l as
itde
term
ines
is n
eces
sary
to
enab
leit
topr
epar
efin
anci
al s
tate
men
ts a
nd a
sta
tem
ent o
f per
form
ance
that
are
free
from
m
ater
ial m
isst
atem
ent,
whe
ther
due
to fr
aud
or e
rror.
In p
repa
ring
the
finan
cial
sta
tem
ents
and
the
stat
emen
t ofp
erfo
rman
ce, t
he [G
over
ning
bod
y]is
resp
onsi
ble
on b
ehal
f of t
he[e
ntity
type
]for
ass
essi
ng th
e [e
ntity
type
]’s a
bilit
yto
con
tinue
as
a go
ing
conc
ern.
The
[Gov
erni
ng b
ody]
is a
lso
resp
onsi
ble
ford
iscl
osin
g, a
s ap
plic
able
, mat
ters
re
late
d to
goi
ng c
once
rn a
nd u
sing
the
goin
g co
ncer
n ba
sis
of a
ccou
ntin
g,un
less
the
[Gov
erni
ng b
ody]
inte
nds
to li
quid
ate
the
[ent
ity ty
pe]o
r to
ceas
e op
erat
ions
, or h
asno
real
istic
al
tern
ativ
e bu
t to
do s
o.
The
[Gov
erni
ng b
ody]
’s re
spon
sibi
litie
s ar
ise
from
the
[Nam
e of
rele
vant
Act
(s)].
Para
grap
hs 3
3 to
36
of IS
A (N
Z) 7
00 (R
evis
ed) s
peci
fy th
e m
atte
rs to
be
incl
uded
in th
e au
dito
r’s
repo
rt un
der t
he h
eadi
ng “R
espo
nsib
ilitie
s of
Tho
se C
harg
ed w
ith G
over
nanc
e fo
r the
Fin
anci
al
Stat
emen
ts”.
The
wor
ding
of t
his
sect
ion
of th
e m
odel
aud
it re
port
com
plie
s w
ith p
arag
raph
s 33
to 3
6 of
ISA
(NZ)
700
(Rev
ised
), ha
ving
bee
n am
ende
d fo
rthe
pub
lic s
ecto
r.
The
audi
t rep
ort s
hall
refe
r to
the
rele
vant
legi
slat
ion
requ
iring
the
gove
rnin
g bo
dy to
pre
pare
the
finan
cial
sta
tem
ents
. It i
s no
t nec
essa
ry to
mak
e re
fere
nce
to s
peci
fic s
ectio
ns w
ithin
the
rele
vant
le
gisl
atio
n.
Res
pons
ibili
ties
of th
e au
dito
rfor
the
audi
t of t
he fi
nanc
ial s
tate
men
ts a
nd th
e st
atem
ent
of p
erfo
rman
ce
Our
obj
ectiv
es a
re to
obt
ain
reas
onab
le a
ssur
ance
abo
ut w
heth
er th
e fin
anci
al s
tate
men
tsan
d
Para
grap
hs 3
7 to
42
of IS
A (N
Z) 7
00 (R
evis
ed) s
peci
fy th
e co
nten
t req
uire
men
ts o
f the
sec
tion
of th
e au
dito
r’s re
port
with
the
head
ing
“Aud
itor’s
Res
pons
ibilit
ies
for t
he A
udit
of th
e Fi
nanc
ial S
tate
men
ts”.
Para
grap
h 38
(a) o
fISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
the
obje
ctiv
es o
f
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-481
7
the
stat
emen
t of p
erfo
rman
ce,a
s a
who
le,a
re fr
ee fr
om m
ater
ial m
isst
atem
ent,
whe
ther
due
to
fraud
or e
rror,
and
to is
sue
an a
udito
r’s re
port
that
incl
udes
our
opi
nion
.
Rea
sona
ble
assu
ranc
e is
a h
igh
leve
l of a
ssur
ance
, but
is n
ot a
gua
rant
ee th
at a
n au
dit c
arrie
d ou
tin
acco
rdan
ce w
ith th
e Au
dito
r-Gen
eral
’s A
uditi
ng S
tand
ards
will
alw
ays
dete
ct a
mat
eria
l m
isst
atem
ent w
hen
it ex
ists
. Mis
stat
emen
ts a
re d
iffer
ence
s or
om
issi
ons
of a
mou
nts
ordi
sclo
sure
s,an
d ca
n ar
ise
from
frau
d or
erro
r. M
isst
atem
ents
are
con
side
red
mat
eria
l if,
indi
vidu
ally
or i
n th
e ag
greg
ate,
they
cou
ld re
ason
ably
be
expe
cted
to in
fluen
ce th
e de
cisi
ons
of
read
ers
take
n on
the
basi
s of
thes
e fin
anci
al s
tate
men
ts a
ndst
atem
ent o
fper
form
ance
.
the
audi
tor a
re to
obt
ain
reas
onab
le a
ssur
ance
abo
ut w
heth
er th
e fin
anci
al s
tate
men
ts, a
s a
who
le,
are
free
from
mat
eria
l mis
stat
emen
t, w
heth
er d
ue to
frau
d or
erro
r, an
dto
issu
e an
aud
itor’s
repo
rt th
at in
clud
es th
e au
dito
r’s o
pini
on.
Para
grap
h 38
(b) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
reas
onab
le
assu
ranc
e is
a h
igh
leve
l of a
ssur
ance
, but
is n
ot a
gua
rant
ee th
at a
n au
dit c
ondu
cted
in a
ccor
danc
e w
ith IS
As (N
Z) w
ill al
way
s de
tect
a m
ater
ial m
isst
atem
ent w
hen
it ex
ists
. All
audi
t rep
orts
issu
ed b
y,
or o
n be
half
of, t
he A
udito
r-Gen
eral
incl
ude
a st
atem
ent t
hat d
escr
ibes
wha
t is
mea
nt b
y th
e te
rm
“mis
stat
emen
t”.
Para
grap
h 38
(c) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
mis
stat
emen
ts
can
aris
e fro
m fr
aud
or e
rror a
nd a
re c
onsi
dere
d m
ater
ial i
f, in
divi
dual
ly o
r in
the
aggr
egat
e, th
ey c
ould
re
ason
ably
be
expe
cted
to in
fluen
ce th
e ec
onom
ic d
ecis
ions
of u
sers
take
n on
the
basi
s of
thes
e fin
anci
al s
tate
men
ts. B
ecau
se th
e au
dit r
epor
t is
addr
esse
d to
read
ers,
dec
isio
ns w
ill no
t be
limite
d to
“e
cono
mic
dec
isio
n”, h
ence
the
chan
ge to
refe
r to
“dec
isio
ns o
f rea
ders
”.
For t
he b
udge
t inf
orm
atio
n re
porte
d in
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of
perfo
rman
ce, o
ur p
roce
dure
s w
ere
limite
d to
che
ckin
g th
at th
e in
form
atio
n ag
reed
to th
e [e
ntity
type
]’s [s
tate
men
t of p
erfo
rman
ce e
xpec
tatio
ns].
We
did
not e
valu
ate
the
secu
rity
and
cont
rols
ove
r the
ele
ctro
nic
publ
icat
ion
of th
e fin
anci
al
stat
emen
ts a
ndth
e st
atem
ento
f per
form
ance
.
Publ
ic e
ntiti
es a
re o
ften
requ
ired
to in
clud
e “b
udge
t inf
orm
atio
n” fo
r the
per
iod
subj
ect t
o au
dit i
n th
eir
finan
cial
sta
tem
ents
and
per
form
ance
info
rmat
ion.
The
pur
pose
of t
he s
tate
men
t in
the
audi
t rep
ort i
s to
cla
rify
the
exte
nt o
f wor
k ca
rried
out
on
budg
et in
form
atio
n.
All a
udit
repo
rts is
sued
by,
or o
n be
half
of th
e Au
dito
r-Gen
eral
incl
ude
a st
atem
ent t
hat t
he a
udito
r is
not r
espo
nsib
le fo
r eva
luat
ing
the
secu
rity
and
cont
rols
ove
r the
ele
ctro
nic
publ
icat
ion
of th
e au
dite
d in
form
atio
n. T
he p
rimar
y re
ason
for t
his
stat
emen
t is
that
aud
ited
info
rmat
ion
is o
ften
publ
ishe
d by
pu
blic
ent
ities
in e
lect
roni
c fo
rm, a
nd m
ay a
lso
be in
clud
ed o
n on
e or
mor
e w
ebsi
tes.
As p
art o
f an
audi
t in
acco
rdan
ce w
ithth
e Au
dito
r-Gen
eral
’s A
uditi
ng S
tand
ards
, we
exer
cise
pr
ofes
sion
al ju
dgem
ent a
nd m
aint
ain
prof
essi
onal
sce
ptic
ism
thro
ugho
ut th
e au
dit.
Also
:
-W
e id
entif
y an
d as
sess
the
risks
of m
ater
ial m
isst
atem
ent o
f the
fina
ncia
l sta
tem
ents
and
the
stat
emen
tofp
erfo
rman
ce, w
heth
er d
ue to
frau
d or
erro
r, de
sign
and
per
form
au
dit p
roce
dure
s re
spon
sive
to th
ose
risks
, and
obt
ain
audi
t evi
denc
e th
at is
suf
ficie
nt
and
appr
opria
te to
pro
vide
a b
asis
for o
ur o
pini
on. T
he ri
sk o
f not
det
ectin
g a
mat
eria
l m
isst
atem
ent r
esul
ting
from
frau
d is
hig
her t
han
for o
ne re
sulti
ng fr
om e
rror,
as fr
aud
may
invo
lve
collu
sion
, for
gery
, int
entio
nal o
mis
sion
s, m
isre
pres
enta
tions
, or t
he
over
ride
of in
tern
al c
ontro
l.
-W
e ob
tain
an
unde
rsta
ndin
g of
inte
rnal
con
trol r
elev
ant t
o th
e au
dit i
n or
der t
o de
sign
au
dit p
roce
dure
s th
at a
re a
ppro
pria
te in
the
circ
umst
ance
s, b
ut n
ot fo
r the
pur
pose
of
expr
essi
ng a
n op
inio
n on
the
effe
ctiv
enes
s of
the
[ent
ity ty
pe]’s
inte
rnal
con
trol.
-W
e ev
alua
te th
e ap
prop
riate
ness
of a
ccou
ntin
g po
licie
s us
ed a
nd th
e re
ason
able
ness
of
acc
ount
ing
estim
ates
and
rela
ted
disc
losu
res
mad
e by
the
[Gov
erni
ng b
ody]
.
-W
e ev
alua
te th
e ap
prop
riate
ness
of t
he re
porte
d pe
rform
ance
info
rmat
ion
with
in th
e [e
ntity
type
]’s fr
amew
ork
for r
epor
ting
its p
erfo
rman
ce;
-W
e co
nclu
de o
n th
e ap
prop
riate
ness
of t
he u
se o
f the
goi
ng c
once
rn b
asis
of
acco
untin
g by
the
[Gov
erni
ng b
ody]
and,
bas
ed o
n th
e au
dit e
vide
nce
obta
ined
, w
heth
er a
mat
eria
l unc
erta
inty
exi
sts
rela
ted
to e
vent
s or
con
ditio
ns th
at m
ay c
ast
sign
ifica
nt d
oubt
on
the
[ent
ity ty
pe]’s
abi
lity
to c
ontin
ue a
s a
goin
g co
ncer
n. If
we
Para
grap
h 39
(a) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
as p
art o
f an
audi
t in
acco
rdan
ce w
ith th
e IS
As (N
Z), t
he a
udito
r exe
rcis
es p
rofe
ssio
nal j
udge
men
t and
mai
ntai
ns
prof
essi
onal
sce
ptic
ism
thro
ugho
ut th
e au
dit.
Para
grap
h 39
(b)(i
) of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
the
audi
tor’s
repo
rt to
des
crib
e th
e au
dito
r’s
resp
onsi
bilit
y to
iden
tify
and
asse
ss th
e ris
ks o
f mat
eria
l mis
stat
emen
t, de
sign
and
per
form
aud
it pr
oced
ures
resp
onsi
ve to
thos
e ris
ks, a
nd o
btai
n au
dit e
vide
nce
that
is s
uffic
ient
and
app
ropr
iate
to
prov
ide
a ba
sis
for t
he a
udito
r’s o
pini
on. T
he ri
sk o
f not
det
ectin
g a
mat
eria
l mis
stat
emen
t res
ultin
g fro
m fr
aud
is h
ighe
r tha
n fo
r one
resu
lting
from
erro
r, as
frau
d m
ay in
volv
e co
llusi
on, f
orge
ry,
inte
ntio
nal o
mis
sion
s, m
isre
pres
enta
tions
, or t
he o
verri
de o
f int
erna
l con
trol.
Para
grap
h 39
(b)(i
i) of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to d
escr
ibe
the
audi
tor’s
re
spon
sibi
lity
toob
tain
an
unde
rsta
ndin
g of
inte
rnal
con
trol r
elev
ant t
o th
e au
dit i
n or
der t
o de
sign
au
dit p
roce
dure
s th
at a
re a
ppro
pria
te in
the
circ
umst
ance
s, b
ut n
ot fo
r the
pur
pose
of e
xpre
ssin
g an
op
inio
n on
the
effe
ctiv
enes
s of
the
entit
y’s
inte
rnal
con
trol.
Para
grap
h 39
(b)(i
ii) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to d
escr
ibe
the
audi
tor’s
re
spon
sibi
lity
toev
alua
te th
e ap
prop
riate
ness
of a
ccou
ntin
g po
licie
s us
ed a
nd th
e re
ason
able
ness
of
acco
untin
g es
timat
es a
nd re
late
d di
sclo
sure
s m
ade
by m
anag
emen
t.
Audi
t rep
orts
issu
ed b
y, o
r on
beha
lf of
, the
Aud
itor-G
ener
al th
at e
xpre
ss a
n op
inio
n on
per
form
ance
in
form
atio
n de
scrib
e th
at th
e au
dito
r eva
luat
es th
eap
prop
riate
ness
of t
he re
porte
d pe
rform
ance
in
form
atio
n w
ithin
the
entit
y’s
fram
ewor
k fo
r rep
ortin
g its
per
form
ance
.
Para
grap
h 39
(b)(i
v) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to d
escr
ibe
the
audi
tor’s
re
spon
sibi
lity
toco
nclu
de o
n th
e ap
prop
riate
ness
of m
anag
emen
t’s u
se o
f the
goi
ng c
once
rn b
asis
of
acc
ount
ing.
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-481
8
conc
lude
that
a m
ater
ial u
ncer
tain
ty e
xist
s, w
e ar
e re
quire
d to
dra
w a
ttent
ion
in o
ur
audi
tor’s
repo
rt to
the
rela
ted
disc
losu
res
in th
e fin
anci
al s
tate
men
tsan
dth
e st
atem
ent
of p
erfo
rman
ceor
, if s
uch
disc
losu
res
are
inad
equa
te, t
o m
odify
our
opi
nion
. Our
co
nclu
sion
s ar
e ba
sed
on th
e au
dit e
vide
nce
obta
ined
up
to th
e da
te o
f our
aud
itor’s
re
port.
How
ever
, fut
ure
even
ts o
r con
ditio
ns m
ay c
ause
the
[ent
ity ty
pe]t
o ce
ase
to
cont
inue
as
a go
ing
conc
ern.
-W
e ev
alua
te th
e ov
eral
l pre
sent
atio
n, s
truct
ure
and
cont
ent o
f the
fina
ncia
l sta
tem
ents
and
the
stat
emen
t ofp
erfo
rman
ce,i
nclu
ding
the
disc
losu
res,
and
whe
ther
the
finan
cial
st
atem
ents
and
the
stat
emen
t of p
erfo
rman
ce re
pres
ent t
he u
nder
lyin
g tra
nsac
tions
and
even
ts in
a m
anne
r tha
t ach
ieve
s fa
ir pr
esen
tatio
n.
Onl
y in
clud
e fo
r a g
roup
aud
it-
We
obta
in s
uffic
ient
app
ropr
iate
aud
it ev
iden
ce re
gard
ing
the
finan
cial
stat
emen
tsan
dth
e st
atem
ent o
f per
form
ance
of t
he e
ntiti
es o
r bus
ines
s ac
tiviti
es w
ithin
the
Gro
up to
exp
ress
an
opin
ion
on th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
tsan
d th
e co
nsol
idat
ed s
tate
men
t of p
erfo
rman
ce. W
e ar
e re
spon
sibl
e fo
r the
dire
ctio
n,
supe
rvis
ion
and
perfo
rman
ce o
f the
gro
up a
udit.
We
rem
ain
sole
ly re
spon
sibl
e fo
r ou
r aud
it op
inio
n.
Para
grap
h 39
(b)(v
) of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
the
audi
tor’s
repo
rt to
des
crib
e th
e au
dito
r’s
resp
onsi
bilit
y to
eval
uate
the
over
all p
rese
ntat
ion,
stru
ctur
e an
d co
nten
t of t
he fi
nanc
ial s
tate
men
ts,
incl
udin
g th
e di
sclo
sure
s, a
nd w
heth
er th
e fin
anci
al s
tate
men
ts re
pres
ent t
he u
nder
lyin
g tra
nsac
tions
an
d ev
ents
in a
man
ner t
hat a
chie
ves
fair
pres
enta
tion.
Para
grap
h 39
(c) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
of a
gro
up to
sta
te th
e au
dito
r’s re
spon
sibi
litie
s ar
e to
obt
ain
suffi
cien
t app
ropr
iate
aud
it ev
iden
ce re
gard
ing
the
finan
cial
in
form
atio
n of
the
entit
ies
or b
usin
ess
activ
ities
with
in th
e G
roup
to e
xpre
ss a
n op
inio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
, tha
t the
aud
itor i
s re
spon
sibl
e fo
r the
dire
ctio
n, s
uper
visi
on a
nd
perfo
rman
ce o
f the
gro
up a
udit,
and
that
the
audi
tor r
emai
ns s
olel
y re
spon
sibl
e fo
r the
aud
it op
inio
n.
We
com
mun
icat
e w
ith th
e[G
over
ning
bod
y]re
gard
ing,
am
ong
othe
r mat
ters
, the
pla
nned
sc
ope
and
timin
g of
the
audi
t and
sig
nific
ant a
udit
findi
ngs,
incl
udin
g an
y si
gnifi
cant
def
icie
ncie
s in
inte
rnal
con
trol t
hat w
e id
entif
y du
ring
our a
udit.
Our
resp
onsi
bilit
ies
aris
es fr
omth
ePu
blic
Aud
it Ac
t 200
1.
Para
grap
h 40
(a) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
the
audi
tor
com
mun
icat
es to
thos
e ch
arge
d w
ith g
over
nanc
e re
gard
ing,
am
ong
othe
r mat
ters
, the
pla
nned
sco
pe
and
timin
g of
the
audi
t and
sig
nific
ant a
udit
findi
ngs,
incl
udin
g an
y si
gnifi
cant
def
icie
ncie
s in
inte
rnal
co
ntro
l tha
t the
aud
itor i
dent
ifies
dur
ing
the
audi
t.
For t
he a
nnua
l aud
it of
a p
ublic
ent
ity, r
efer
ence
sho
uld
be m
ade
to th
e Pu
blic
Aud
it Ac
t 200
1 in
eve
ry
audi
t rep
ort.
Oth
er In
form
atio
n
The
[Gov
erni
ng b
ody]
isre
spon
sibl
efo
r the
oth
er in
form
atio
n. T
he o
ther
info
rmat
ion
com
pris
es
the
info
rmat
ion
incl
uded
on p
ages
[XX
to Y
Y], b
ut d
oes
not i
nclu
de th
e fin
anci
al s
tate
men
ts a
ndth
e st
atem
ent o
f per
form
ance
, and
our
aud
itor’s
repo
rt th
ereo
n.
Our
opi
nion
on
the
finan
cial
sta
tem
ents
and
the
stat
emen
tofp
erfo
rman
cedo
es n
ot c
over
the
othe
r inf
orm
atio
n an
d w
e do
not
exp
ress
any
form
of a
udit
opin
ion
or a
ssur
ance
con
clus
ion
ther
eon.
In c
onne
ctio
n w
ith o
ur a
udit
of th
e fin
anci
al s
tate
men
ts a
ndth
e st
atem
ent o
fper
form
ance
, our
re
spon
sibi
lity
is to
read
the
othe
r inf
orm
atio
n. In
doi
ng s
o, w
e co
nsid
er w
heth
er th
e ot
her
info
rmat
ion
is m
ater
ially
inco
nsis
tent
with
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of
perfo
rman
ce o
r our
kno
wle
dge
obta
ined
in th
e au
dit,
or o
ther
wis
e ap
pear
s to
be
mat
eria
lly
mis
stat
ed. I
f, ba
sed
onou
rwor
k, w
e co
nclu
de th
at th
ere
is a
mat
eria
l mis
stat
emen
t of t
his
othe
r in
form
atio
n, w
e ar
e re
quire
d to
repo
rt th
at fa
ct. W
e ha
ve n
othi
ng to
repo
rt in
this
rega
rd.
Para
grap
h 32
of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
the
audi
tor t
o re
port
in a
ccor
danc
e w
ith IS
A (N
Z)
720
(Rev
ised
). IS
A (N
Z) 7
20 (R
evis
ed) a
ckno
wle
dges
the
poss
ibilit
y th
at th
e ot
her i
nfor
mat
ion
may
no
t be
avai
labl
e be
fore
the
audi
t has
been
com
plet
ed, a
nd s
peci
fies
the
audi
t rep
ort r
equi
rem
ents
in
this
situ
atio
n.
Inde
pend
ence
We
are
inde
pend
ent o
f the
[ent
ity ty
pe]i
n ac
cord
ance
with
the
inde
pend
ence
requ
irem
ents
of
Para
grap
hs 2
8(c)
, NZ2
8(c)
,and
NZ2
8.1
requ
ire s
tate
men
ts to
be
mad
e in
the
audi
tor’s
repo
rt, u
nder
th
e “B
asis
for O
pini
on” h
eadi
ng, a
bout
the
audi
tor’s
inde
pend
ence
. The
sta
tem
ents
requ
ired
are:
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-481
9
the
Audi
tor-G
ener
al’s
Aud
iting
Sta
ndar
ds, w
hich
inco
rpor
ate
the
inde
pend
ence
requ
irem
ents
of
Prof
essi
onal
and
Eth
ical
Sta
ndar
d 1
(Rev
ised
):C
ode
of E
thic
s fo
r Ass
uran
ce P
ract
ition
ers
issu
ed b
y th
e N
ew Z
eala
nd A
uditi
ng a
nd A
ssur
ance
Sta
ndar
ds B
oard
.
Oth
er th
anth
e au
dit,
we
have
no
rela
tions
hip
with
, or i
nter
ests
in, t
he [e
ntity
type
].
Or
[In a
dditi
on to
the
audi
t,w
e ha
ve c
arrie
d ou
t eng
agem
ents
in th
e ar
eas
of [i
nser
t des
crip
tion
of
enga
gem
ents
], w
hich
are
com
patib
le w
ith th
ose
inde
pend
ence
requ
irem
ents
. Oth
er th
an th
e au
dit a
nd th
ese
enga
gem
ents
, we
have
no
rela
tions
hip
with
,or i
nter
ests
in,t
he [e
ntity
type
].]
28(c
)
Th
at th
e au
dito
r is
inde
pend
ent o
f the
ent
ity in
acc
orda
nce
with
the
rele
vant
eth
ical
re
quire
men
ts re
latin
g to
the
audi
t …N
Z28(
c)
In N
ew Z
eala
nd, t
he s
tate
men
t req
uire
d by
par
agra
ph 2
8(c)
sha
ll re
fer t
o Pr
ofes
sion
al
and
Ethi
cal S
tand
ard
1 (R
evis
ed) C
ode
of E
thic
s fo
r Ass
uran
ce P
ract
ition
ers
issu
ed b
y th
e N
ew Z
eala
nd A
uditi
ng a
nd A
ssur
ance
Sta
ndar
ds B
oard
. N
Z28.
1
The
exi
sten
ce o
f any
rela
tions
hip
(oth
er th
an th
at o
f aud
itor)
whi
ch th
e au
dito
r has
with
, or
any
inte
rest
s w
hich
the
audi
tor h
as in
, the
ent
ity.
In a
udit
repo
rts is
sued
by,
or o
n be
half
of, t
he A
udito
r-Gen
eral
the
requ
ired
stat
emen
ts a
bout
in
depe
nden
ce u
nder
par
agra
phs
28(c
), N
Z28(
c),a
nd N
Z28.
1 ar
e in
clud
ed u
nder
a s
epar
ate
“Inde
pend
ence
” hea
ding
.
[Sig
natu
re o
f App
oint
ed A
udito
r][N
ame
of A
ppoi
nted
Aud
itor]
[Nam
e of
Aud
iting
Firm
]O
n be
half
of th
e Au
dito
r-Gen
eral
[City
], N
ew Z
eala
nd
Para
grap
h N
Z46.
1 of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
at th
e na
me
of th
e en
gage
men
t par
tner
sha
ll be
incl
uded
in th
e au
dito
r’s re
port
on fi
nanc
ial s
tate
men
ts o
f FM
C e
ntiti
es c
onsi
dere
d to
hav
e a
high
er
leve
l of p
ublic
acc
ount
abilit
y. T
he A
udito
r-Gen
eral
requ
ires
the
nam
e of
the
Appo
inte
d Au
dito
r to
be
incl
uded
in th
e au
dit r
epor
ts o
f all
entit
ies,
follo
wed
by
the
nam
e of
the
firm
of t
he A
ppoi
nted
Aud
itor.
Para
grap
h 47
of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
that
the
audi
tor’s
repo
rt sh
all b
e si
gned
.The
Au
dito
r-Gen
eral
requ
ires
the
sign
atur
e of
the
Appo
inte
d Au
dito
r. If
the
Appo
inte
d Au
dito
r wan
ts to
in
clud
e th
e si
gnat
ure
of th
e Au
dit F
irm, t
his
may
be
incl
uded
alo
ngsi
de th
e si
gnat
ure
of th
e Ap
poin
ted
Audi
tor a
s fo
llow
s:__
____
____
____
____
____
____
____
____
____
____
____
____
___
____
____
____
____
____
____
____
____
____
____
____
____
____
[Sig
natu
re o
f App
oint
ed A
udito
r]
[S
igna
ture
of A
uditi
ng F
irm]
Nam
e of
App
oint
edAu
dito
r]
[N
ame
of A
uditi
ng F
irm]
On
beha
lf of
the
Audi
tor-G
ener
al[C
ity],
New
Zea
land
Ref
er to
par
agra
ph 1
2 of
this
Sta
tem
ent f
or re
quire
men
ts o
n si
gnin
g th
e au
dit r
epor
t.
Para
grap
h 48
of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
that
the
audi
tor’s
repo
rt sh
all n
ame
the
loca
tion
whe
re th
e au
dito
r pra
ctis
es.
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-482
0
App
endi
x 3
–U
nmod
ified
mod
el a
udit
repo
rt fo
r a p
ublic
ent
ity a
pply
ing
a co
mpl
ianc
e fr
amew
ork
The
follo
win
g au
dit r
epor
t is
for a
n en
tity,
whi
ch is
not
a F
MC
repo
rting
ent
ity (u
nder
the
Fina
ncia
l Mar
kets
Con
duct
Act
201
3), t
hat i
s re
quire
d to
repo
rt
perfo
rman
ce in
form
atio
n in
a s
tate
men
t of p
erfo
rman
ce.
Unm
odifi
edm
odel
aud
it re
port
–C
ompl
ianc
e Fr
amew
ork
ISA
(NZ)
700
(Rev
ised
) req
uire
men
ts a
nd c
orre
spon
ding
OAG
pol
icie
s
[Firm
’s le
tterh
ead]
The
audi
t rep
ort s
hall
be p
rinte
d on
the
lette
rhea
d of
the
audi
ting
firm
.
IND
EPEN
DEN
T AU
DIT
OR
’S R
EPO
RT
Para
grap
h 21
of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
that
the
audi
tor’s
repo
rt sh
all h
ave
a tit
le th
at c
lear
ly
indi
cate
s th
at it
is th
e re
port
of a
n in
depe
nden
t aud
itor.
TO T
HE
[REA
DER
S] O
F[N
AM
E O
F EN
TITY
]’SPa
ragr
aph
22 o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
at th
e au
dito
r’s re
port
shal
l be
addr
esse
d, a
s ap
prop
riate
, bas
ed o
n th
e ci
rcum
stan
ces
of th
e en
gage
men
t.
Unl
ess
an e
xem
ptio
n ha
s be
en s
peci
fical
ly p
rovi
ded
for b
y th
e O
AG, a
ll au
dit r
epor
ts is
sued
by
the
Audi
tor-G
ener
al s
hall
be a
ddre
ssed
to th
e “re
ader
s” b
ecau
se p
ublic
ent
ities
are
acc
ount
able
to a
wid
e co
nstit
uenc
y an
d th
e Au
dito
r-Gen
eral
has
bro
ad re
spon
sibi
litie
s to
repo
rt to
this
con
stitu
ency
. In
divi
dual
exc
eptio
ns m
ay in
clud
e si
tuat
ions
whe
re th
ere
is a
min
ority
priv
ate
sect
or in
tere
st in
the
entit
y. F
or e
xam
ple,
whe
re th
e en
tity
is a
join
t ven
ture
and
one
of t
he p
artn
ers
is fr
om th
e pr
ivat
e se
ctor
, the
n th
e au
dit r
epor
t sha
ll be
add
ress
ed to
the
“join
t ven
ture
rs”.
Whe
re a
n au
dit r
epor
t is
addr
esse
d to
a p
arty
oth
er th
an to
“the
read
ers”
, the
aud
it re
port
will
norm
ally
in
clud
e th
e fo
llow
ing
wor
ding
:
TO T
HE
[SH
AR
EHO
LDER
S/JO
INT
VEN
TUR
ERS/
PAR
TNER
S] O
F [N
AM
E O
F EN
TITY
]
FIN
ANC
IAL
STAT
EMEN
TS A
ND
STA
TEM
ENT
OF
PER
FOR
MAN
CE
FOR
TH
E YE
AR E
ND
ED [D
DM
M 2
0XX]
The
term
inol
ogy
used
to d
escr
ibe
the
acco
unta
bilit
y st
atem
ents
sha
ll be
the
sam
e as
that
use
d by
the
publ
ic e
ntity
pro
vide
d it
appr
opria
tely
des
crib
es th
e m
ater
ial t
hat h
as b
een
audi
ted.
The
bala
nce
date
is n
orm
ally
det
erm
ined
by
legi
slat
ion
or b
y th
e go
vern
ing
body
with
in th
e co
nstra
ints
of
any
legi
slat
ion.
The
Audi
tor-G
ener
al is
the
audi
tor o
f [N
ame
of E
ntity
](th
e [e
ntity
type
]). T
he A
udito
r-Gen
eral
ha
s ap
poin
ted
me,
[Nam
e of
App
oint
ed A
udito
r], u
sing
the
staf
f and
reso
urce
s of
[Nam
e of
Au
ditin
g Fi
rm],
to c
arry
out
the
audi
t of t
he fi
nanc
ial s
tate
men
ts a
nd s
tate
men
t of p
erfo
rman
ceof
the
[ent
ity ty
pe]o
n hi
s be
half.
The
Pub
lic A
udit
Act
200
1 (s
ectio
n 32
) dea
ls w
ith th
e ap
poin
tmen
t of a
udito
rs. T
he A
udito
r-Gen
eral
m
ay fr
om ti
me
to ti
me
appo
int –
in w
ritin
g –
a su
itabl
e pe
rson
or b
ody
to a
ct a
s an
aud
itor o
n th
e A
udito
r-Gen
eral
’s b
ehal
f.
Opi
nion
Par
agra
ph 2
3 of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
at th
e au
dito
r’s re
port
shal
l inc
lude
the
audi
tor’s
op
inio
n, a
nd s
hall
have
the
head
ing
“Opi
nion
”.
We
have
aud
ited:
-th
e fin
anci
al s
tate
men
ts o
f the
[ent
ity ty
pe] o
n pa
ges
[…] t
o […
], th
at c
ompr
ise4
the
Par
agra
ph 2
4 of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
at th
e O
pini
on s
ectio
n of
the
audi
tor’s
repo
rt sh
all a
lso:
-id
entif
y th
e en
tity
who
se fi
nanc
ial s
tate
men
ts h
ave
been
aud
ited;
4E
nsur
e th
at th
e na
mes
that
are
use
d in
the
finan
cial
sta
tem
ents
and
perfo
rman
ce in
form
atio
n ar
e re
plic
ated
in th
e au
dit r
epor
t.
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-482
1
[sta
tem
ent o
f fin
anci
al p
ositi
on] a
s at
[DD
MM
20XX
], th
e [s
tate
men
t of c
ompr
ehen
sive
in
com
e, s
tate
men
t of c
hang
es in
equ
ity a
nd s
tate
men
t of c
ash
flow
s] fo
r the
yea
r end
ed
on th
at d
ate,
and
[the
not
es to
the
finan
cial
sta
tem
ents
,tha
t inc
lude
acco
untin
g po
licie
san
d ot
her e
xpla
nato
ry in
form
atio
n]; a
nd
-th
e st
atem
ent o
f per
form
ance
3of
the
[ent
ity ty
pe] o
n pa
ges
[…] t
o […
].
-st
ate
that
the
finan
cial
sta
tem
ents
hav
e be
en a
udite
d;-
iden
tify
the
title
of e
ach
stat
emen
t tha
t com
pris
es th
e fin
anci
al s
tate
men
ts;
-re
fer t
o th
e no
tes,
incl
udin
g th
e su
mm
ary
of s
igni
fican
t acc
ount
ing
polic
ies;
and
-sp
ecify
the
date
or p
erio
d co
vere
d by
eac
h fin
anci
al s
tate
men
t com
pris
ing
the
finan
cial
st
atem
ents
.
Iden
tific
atio
n of
aud
ited
info
rmat
ion
by p
age
num
ber w
ill as
sist
read
ers
to id
entif
y th
e in
form
atio
n to
w
hich
the
audi
t rep
ort r
efer
s.
In o
ur o
pini
on th
e fin
anci
al s
tate
men
ts a
nd th
est
atem
ent o
f per
form
ance
of t
he [e
ntity
type
]ha
ve b
een
prep
ared
, in
all m
ater
ial r
espe
cts,
in a
ccor
danc
e w
ith [t
he a
pplic
able
fina
ncia
l re
porti
ng fr
amew
ork]
.
Whe
n fin
anci
al s
tate
men
ts a
nd p
erfo
rman
ce in
form
atio
n ha
ve b
een
prep
ared
in a
ccor
danc
e w
ith a
co
mpl
ianc
e fra
mew
ork
the
audi
tor i
s no
t req
uire
d to
asse
ss th
e fa
ir pr
esen
tatio
n of
thos
e st
atem
ents
. As
a re
sult,
a“d
ual”
opin
ion
is n
ot e
xpre
ssed
forf
inan
cial
sta
tem
ents
and
per
form
ance
info
rmat
ion
prep
ared
in a
ccor
danc
e w
ith a
com
plia
nce
fram
ewor
k.
Our
aud
it w
as c
ompl
eted
on
[Dat
e]. T
his
is th
e da
te a
t whi
ch o
ur o
pini
on is
exp
ress
ed.
In a
dditi
on to
par
agra
ph 4
9 of
ISA
(NZ)
700
(Rev
ised
), th
e au
dit r
epor
t sha
ll no
t be
date
d be
fore
:-
the
date
on
whi
ch th
e st
atem
ent o
f res
pons
ibilit
y or
equ
ival
ent s
tate
men
t is
sign
ed; o
r-
the
date
of t
he w
ritte
n re
pres
enta
tion,
as
requ
ired
by A
G IS
A (N
Z) 5
80 a
nd IS
A (N
Z) 5
80.
The
Appo
inte
d Au
dito
r, in
nor
mal
circ
umst
ance
s, s
hall
not s
ign
and
date
the
audi
t rep
ort u
ntil
all o
ther
in
form
atio
n (o
ther
than
the
audi
ted
finan
cial
and
per
form
ance
info
rmat
ion)
that
will
be in
clud
ed in
the
entit
y’s
annu
al re
port
has
been
rece
ived
and
con
side
red
by th
e au
dito
r in
acco
rdan
ce w
ith IS
A (N
Z)
720
(Rev
ised
).
The
basi
s fo
r our
opi
nion
is e
xpla
ined
bel
ow. I
n ad
ditio
n, w
e ou
tline
the
resp
onsi
bilit
ies
of th
e [G
over
ning
bod
y] a
nd o
ur re
spon
sibi
litie
s re
latin
g to
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of
per
form
ance
, we
com
men
t on
othe
r inf
orm
atio
n, a
nd w
e ex
plai
n ou
r ind
epen
denc
e.
Audi
t rep
orts
issu
ed b
y, o
r on
beha
lf of
, the
Aud
itor-G
ener
al s
hall
incl
ude
a se
para
te s
ectio
n un
der t
hehe
adin
g “In
depe
nden
ce”.
This
is a
dep
artu
re fr
om p
arag
raph
s 28
(c),
NZ2
8(c)
, NZ2
8.1
and
NZ4
0(b)
(1)
of IS
A (N
Z) 7
00 (R
evis
ed) t
hat r
equi
re s
tate
men
ts a
bout
the
audi
tor’s
inde
pend
ence
to b
e in
clud
ed
unde
r the
hea
ding
s “B
asis
for O
pini
on” a
nd “A
udito
r’s R
espo
nsib
ilitie
s fo
r the
Aud
it of
the
Fina
ncia
l St
atem
ents
.
The
Audi
tor-G
ener
al is
spe
cific
ally
requ
ired
to a
ct in
depe
nden
tly u
nder
sec
tion
9 of
the
Publ
ic A
udit
Act 2
001.
The
hei
ghte
ned
expe
ctat
ion
that
the
Audi
tor-G
ener
al m
ust a
ct, a
nd b
e se
en to
act
, in
depe
nden
tly, c
ombi
ned
with
the
reco
gniti
on th
at in
depe
nden
ce is
fund
amen
tal t
o th
e Au
dito
r-G
ener
al h
as le
d th
e Au
dito
r-Gen
eral
to ra
isin
g th
e pr
omin
ence
of i
ndep
ende
nce
by in
clud
ing
a se
para
te s
ectio
n un
der t
he h
eadi
ng “I
ndep
ende
nce”
.
Bas
is fo
r opi
nion
We
carri
ed o
ut o
ur a
udit
in a
ccor
danc
e w
ith th
e Au
dito
r-Gen
eral
’s A
uditi
ng S
tand
ards
, whi
ch
inco
rpor
ate
the
Prof
essi
onal
and
Eth
ical
Sta
ndar
ds a
nd th
e In
tern
atio
nal S
tand
ards
on
Audi
ting
(New
Zea
land
) iss
ued
by th
e N
ew Z
eala
nd A
uditi
ng a
nd A
ssur
ance
Sta
ndar
ds B
oard
. Our
re
spon
sibi
litie
s un
der t
hose
sta
ndar
ds a
re fu
rther
des
crib
ed in
the
Res
pons
ibilit
ies
of th
e au
dito
r se
ctio
n of
our
repo
rt.
We
have
fulfi
lled
our r
espo
nsib
ilitie
s in
acc
orda
nce
with
the
Audi
tor-G
ener
al’s
Aud
iting
St
anda
rds.
We
belie
ve th
at th
e au
dit e
vide
nce
we
have
obt
aine
d is
suf
ficie
nt a
nd a
ppro
pria
te to
pro
vide
a
basi
s fo
r our
opi
nion
.
The
Basi
s fo
r Opi
nion
sec
tion
com
plie
s w
ith th
e re
quire
men
ts o
f par
agra
ph 2
8(a)
, (b)
, and
(d) o
f ISA
(N
Z) 7
00 (R
evis
ed).
This
sec
tion
also
com
plie
s w
ithth
e re
quire
men
t in
para
grap
h 28
(c) o
f ISA
(NZ)
70
0 (R
evis
ed) f
or th
e au
dito
r to
stat
e th
at th
ey h
ave
fulfi
lled
thei
r oth
er e
thic
al re
spon
sibi
litie
s (in
ad
ditio
n to
the
inde
pend
ence
requ
irem
ents
) und
er th
e re
leva
nt e
thic
al re
quire
men
ts. B
ecau
se
asse
rtion
of c
ompl
ianc
e w
ith th
e au
dito
r’s in
depe
nden
ce re
quire
men
ts is
mad
e un
der t
he
“Inde
pend
ence
” hea
ding
of t
he a
udit
repo
rt, th
e re
quire
men
t for
the
audi
tor t
o as
sert
com
plia
nce
with
th
eir o
ther
eth
ical
resp
onsi
bilit
ies
is n
eede
d. T
his
requ
irem
ent i
s en
com
pass
ed in
the
stat
emen
t “W
e ha
ve fu
lfille
d ou
r res
pons
ibilit
ies
in a
ccor
danc
e w
ith th
e Au
dito
r-Gen
eral
’s A
uditi
ng S
tand
ards
” whi
ch
enco
mpa
sses
the
audi
tor’s
oth
er e
thic
al re
spon
sibi
litie
s.
The
requ
ired
stat
emen
ts a
bout
inde
pend
ence
und
er p
arag
raph
s 28
(c),
NZ2
8(c)
and
NZ2
8.1
have
be
en in
clud
ed u
nder
a s
epar
ate
Inde
pend
ence
hea
ding
.
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-482
2
Res
pons
ibili
ties
of th
e [G
over
ning
bod
y] fo
r the
fina
ncia
l sta
tem
ents
and
the
stat
emen
t of
per
form
ance
The
[Gov
erni
ng b
ody]
is re
spon
sibl
e on
beh
alf o
f the
[ent
ity ty
pe] f
or th
epr
epar
atio
n of
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of p
erfo
rman
cein
acc
orda
nce
with
[the
app
licab
le
finan
cial
repo
rting
fram
ewor
k].
The
[Gov
erni
ng b
ody]
is re
spon
sibl
e fo
r suc
h in
tern
al c
ontro
l as
it de
term
ines
is n
eces
sary
to
enab
le it
to p
repa
refin
anci
al s
tate
men
ts a
nd a
sta
tem
ent o
f per
form
ance
that
are
free
from
m
ater
ial m
isst
atem
ent,
whe
ther
due
to fr
aud
or e
rror.
In p
repa
ring
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of p
erfo
rman
ce, t
he [G
over
ning
bod
y]is
resp
onsi
ble
on b
ehal
f of t
he [e
ntity
type
] for
ass
essi
ng th
e [e
ntity
type
]’s a
bilit
y to
con
tinue
as
a go
ing
conc
ern.
The
[Gov
erni
ng b
ody]
is a
lso
resp
onsi
ble
ford
iscl
osin
g, a
s ap
plic
able
, mat
ters
re
late
d to
goi
ng c
once
rn a
nd u
sing
the
goin
g co
ncer
n ba
sis
of a
ccou
ntin
g, u
nles
s th
e [G
over
ning
bod
y] in
tend
s to
liqu
idat
e th
e [e
ntity
type
] or t
o ce
ase
oper
atio
ns, o
r has
no re
alis
tic
alte
rnat
ive
but t
o do
so.
The
[Gov
erni
ng b
ody]
’s re
spon
sibi
litie
s ar
ise
from
the
[Nam
e of
rele
vant
Act
(s)].
Para
grap
hs 3
3 to
36
of IS
A (N
Z) 7
00 (R
evis
ed) s
peci
fy th
e m
atte
rs to
be
incl
uded
in th
e au
dito
r’s
repo
rt un
der t
he h
eadi
ng “R
espo
nsib
ilitie
s of
Tho
se C
harg
ed w
ith G
over
nanc
e fo
r the
Fin
anci
al
Stat
emen
ts”.
The
wor
ding
of t
his
sect
ion
of th
e m
odel
aud
it re
port
com
plie
s w
ith p
arag
raph
s 33
to 3
6 of
ISA
(NZ)
700
(Rev
ised
), ha
ving
bee
n am
ende
d to
refle
ct th
e pu
blic
sec
tor c
onte
xt.
The
audi
t rep
ort s
hall
refe
r to
the
rele
vant
legi
slat
ion
requ
iring
the
gove
rnin
g bo
dy to
pre
pare
the
finan
cial
sta
tem
ents
. It i
s no
t nec
essa
ry to
mak
e re
fere
nce
to s
peci
fic s
ectio
ns w
ithin
the
rele
vant
le
gisl
atio
n.
Res
pons
ibili
ties
of th
e au
dito
r for
the
audi
t of t
he fi
nanc
ial s
tate
men
ts a
nd th
e st
atem
ent
of p
erfo
rman
cePa
ragr
aphs
37
to 4
2 of
ISA
(NZ)
700
(Rev
ised
) spe
cify
the
cont
ent r
equi
rem
ents
of t
he s
ectio
n of
the
audi
tor’s
repo
rt w
ith th
e he
adin
g “A
udito
r’s R
espo
nsib
ilitie
s fo
r the
Aud
it of
the
Fina
ncia
l Sta
tem
ents
”.
Our
obj
ectiv
es a
re to
obt
ain
reas
onab
le a
ssur
ance
abo
ut w
heth
er th
e fin
anci
al s
tate
men
ts a
nd
the
stat
emen
t of p
erfo
rman
ce, a
s a
who
le, a
re fr
ee fr
om m
ater
ial m
isst
atem
ent,
whe
ther
due
to
fraud
or e
rror,
and
to is
sue
an a
udito
r’s re
port
that
incl
udes
our
opi
nion
.
Rea
sona
ble
assu
ranc
e is
a h
igh
leve
l of a
ssur
ance
, but
is n
ot a
gua
rant
ee th
at a
n au
dit c
arrie
d ou
tin
acco
rdan
ce w
ith th
e Au
dito
r-Gen
eral
’s A
uditi
ng S
tand
ards
will
alw
ays
dete
ct a
mat
eria
l m
isst
atem
ent w
hen
it ex
ists
.Mis
stat
emen
ts a
re d
iffer
ence
s or
om
issi
ons
of a
mou
nts
and
disc
losu
res,
and
can
aris
e fro
m fr
aud
or e
rror.
Mis
stat
emen
ts a
re c
onsi
dere
d m
ater
ial i
f, in
divi
dual
ly o
r in
the
aggr
egat
e, th
ey c
ould
reas
onab
ly b
e ex
pect
ed to
influ
ence
the
deci
sion
s of
re
ader
s ta
ken
on th
e ba
sis
of th
ese
finan
cial
sta
tem
ents
and
sta
tem
ent o
f per
form
ance
.
Para
grap
h 38
(a) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
the
obje
ctiv
es o
f th
e au
dito
r are
to o
btai
n re
ason
able
ass
uran
ce a
bout
whe
ther
the
finan
cial
sta
tem
ents
, as
a w
hole
, ar
e fre
e fro
m m
ater
ial m
isst
atem
ent,
whe
ther
due
to fr
aud
or e
rror,
and
to is
sue
an a
udito
r’s re
port
that
incl
udes
the
audi
tor’s
opi
nion
.
Para
grap
h 38
(b) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
reas
onab
le
assu
ranc
e is
a h
igh
leve
l of a
ssur
ance
, but
is n
ot a
gua
rant
ee th
at a
n au
dit c
ondu
cted
in a
ccor
danc
e w
ith IS
As (N
Z) w
ill al
way
s de
tect
a m
ater
ial m
isst
atem
ent w
hen
it ex
ists
.All
audi
t rep
orts
issu
ed b
y, o
r on
beh
alf o
f, th
e Au
dito
r-Gen
eral
incl
ude
a st
atem
ent t
hat d
escr
ibes
wha
t is
mea
nt b
y th
e te
rm
“mat
eria
l mis
stat
emen
t”.
Para
grap
h 38
(c) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
mis
stat
emen
ts
can
aris
e fro
m fr
aud
or e
rror a
nd a
re c
onsi
dere
d m
ater
ial i
f, in
divi
dual
ly o
r in
the
aggr
egat
e, th
ey c
ould
re
ason
ably
be
expe
cted
to in
fluen
ce th
e ec
onom
ic d
ecis
ions
of u
sers
take
n on
the
basi
s of
thes
e fin
anci
al s
tate
men
ts. B
ecau
se th
e au
dit r
epor
t is
addr
esse
d to
read
ers,
dec
isio
ns w
ill no
t be
limite
d to
“e
cono
mic
dec
isio
n”, h
ence
the
chan
ge to
refe
r to
“dec
isio
ns o
f rea
ders
”.
[For
the
budg
et in
form
atio
n re
porte
d in
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of
perfo
rman
ce, o
ur p
roce
dure
s w
ere
limite
d to
che
ckin
g th
at th
e in
form
atio
n ag
reed
to th
e [e
ntity
type
]’s [s
tate
men
t of p
erfo
rman
ce e
xpec
tatio
ns].]
We
did
not e
valu
ate
the
secu
rity
and
cont
rols
ove
r the
ele
ctro
nic
publ
icat
ion
of th
e fin
anci
al
stat
emen
ts a
ndth
e st
atem
ent o
f per
form
ance
.
Publ
ic e
ntiti
es a
re o
ften
requ
ired
to in
clud
e “b
udge
t inf
orm
atio
n” fo
r the
per
iod
subj
ect t
o au
dit i
n th
eir
finan
cial
sta
tem
ents
and
per
form
ance
info
rmat
ion.
The
pur
pose
of t
he s
tate
men
t in
the
audi
t rep
ort i
s to
cla
rify
the
exte
nt o
f wor
k ca
rried
out
on
budg
et in
form
atio
n.Th
is te
xt s
houl
d on
ly b
e in
clud
ed in
the
audi
t rep
ort w
hen
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of p
erfo
rman
ce in
clud
e bu
dget
in
form
atio
n.
All a
udit
repo
rts is
sued
by,
or o
n be
half
of th
e Au
dito
r-Gen
eral
incl
ude
a st
atem
ent t
hat t
he a
udito
r is
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-482
3
not r
espo
nsib
le fo
r eva
luat
ing
the
secu
rity
and
cont
rols
ove
r the
ele
ctro
nic
publ
icat
ion
of th
e au
dite
d in
form
atio
n. T
he p
rimar
y re
ason
for t
his
stat
emen
t is
that
aud
ited
info
rmat
ion
is o
ften
publ
ishe
d by
pu
blic
ent
ities
in e
lect
roni
c fo
rm, a
nd m
ay a
lso
be in
clud
ed o
n on
e or
mor
e w
ebsi
tes.
As p
art o
f an
audi
t in
acco
rdan
ce w
ithth
e Au
dito
r-Gen
eral
’s A
uditi
ng S
tand
ards
, we
exer
cise
pr
ofes
sion
al ju
dgem
ent a
nd m
aint
ain
prof
essi
onal
sce
ptic
ism
thro
ugho
ut th
e au
dit.
Also
:
-W
e id
entif
y an
d as
sess
the
risks
of m
ater
ial m
isst
atem
ent o
f the
fina
ncia
l sta
tem
ents
and
the
stat
emen
t of p
erfo
rman
ce, w
heth
er d
ue to
frau
d or
erro
r, de
sign
and
per
form
au
dit p
roce
dure
s re
spon
sive
to th
ose
risks
, and
obt
ain
audi
t evi
denc
e th
at is
suf
ficie
nt
and
appr
opria
te to
pro
vide
a b
asis
for o
ur o
pini
on. T
he ri
sk o
f not
det
ectin
g a
mat
eria
l m
isst
atem
ent r
esul
ting
from
frau
d is
hig
her t
han
for o
ne re
sulti
ng fr
om e
rror,
as fr
aud
may
invo
lve
collu
sion
, for
gery
, int
entio
nal o
mis
sion
s, m
isre
pres
enta
tions
, or t
he
over
ride
of in
tern
al c
ontro
l.
-W
e ob
tain
an
unde
rsta
ndin
g of
inte
rnal
con
trol r
elev
ant t
o th
e au
dit i
n or
der t
o de
sign
au
dit p
roce
dure
s th
at a
re a
ppro
pria
te in
the
circ
umst
ance
s, b
ut n
ot fo
r the
pur
pose
of
expr
essi
ng a
n op
inio
n on
the
effe
ctiv
enes
s of
the
[ent
ity ty
pe]’s
inte
rnal
con
trol.
-W
e ev
alua
te th
e ap
prop
riate
ness
of a
ccou
ntin
g po
licie
s us
ed a
nd th
e re
ason
able
ness
of
acc
ount
ing
estim
ates
and
rela
ted
disc
losu
res
mad
e by
the
[Gov
erni
ng b
ody]
.
-W
e ev
alua
te th
e ap
prop
riate
ness
of t
he re
porte
d pe
rform
ance
info
rmat
ion
with
in th
e [e
ntity
type
]’s fr
amew
ork
for r
epor
ting
its p
erfo
rman
ce;
-W
e co
nclu
de o
n th
e ap
prop
riate
ness
of t
he u
se o
f the
goi
ng c
once
rn b
asis
of
acco
untin
g by
the
[Gov
erni
ng b
ody]
and,
bas
ed o
n th
e au
dit e
vide
nce
obta
ined
, w
heth
er a
mat
eria
l unc
erta
inty
exi
sts
rela
ted
toev
ents
or c
ondi
tions
that
may
cas
t si
gnifi
cant
dou
bt o
n th
e [e
ntity
type
]’s a
bilit
y to
con
tinue
as
a go
ing
conc
ern.
If w
e co
nclu
de th
at a
mat
eria
l unc
erta
inty
exi
sts,
we
are
requ
ired
to d
raw
atte
ntio
n in
our
au
dito
r’s re
port
to th
e re
late
d di
sclo
sure
s in
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of
per
form
ance
or,
if su
ch d
iscl
osur
es a
re in
adeq
uate
, to
mod
ify o
ur o
pini
on. O
ur
conc
lusi
ons
are
base
d on
the
audi
t evi
denc
e ob
tain
ed u
p to
the
date
of o
ur a
udito
r’s
repo
rt. H
owev
er, f
utur
e ev
ents
or c
ondi
tions
may
cau
se th
e [e
ntity
type
] to
ceas
e to
co
ntin
ue a
s a
goin
g co
ncer
n.
Para
grap
h 39
(a) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
as p
art o
f an
audi
t in
acco
rdan
ce w
ith th
e IS
As (N
Z), t
he a
udito
r exe
rcis
es p
rofe
ssio
nal j
udge
men
t and
mai
ntai
ns
prof
essi
onal
sce
ptic
ism
thro
ugho
ut th
e au
dit.
Para
grap
h 39
(b)(i
) of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
the
audi
tor’s
repo
rt to
des
crib
e th
e au
dito
r’s
resp
onsi
bilit
y to
iden
tify
and
asse
ss th
e ris
ks o
f mat
eria
l mis
stat
emen
t, de
sign
and
per
form
aud
it pr
oced
ures
resp
onsi
ve to
thos
e ris
ks, a
nd o
btai
n au
dit e
vide
nce
that
is s
uffic
ient
and
app
ropr
iate
to
prov
ide
a ba
sis
for t
he a
udito
r’s o
pini
on. T
he ri
sk o
f not
det
ectin
g a
mat
eria
l mis
stat
emen
t res
ultin
g fro
m fr
aud
is h
ighe
r tha
n fo
r one
resu
lting
from
erro
r, as
frau
d m
ay in
volv
e co
llusi
on, f
orge
ry,
inte
ntio
nal o
mis
sion
s, m
isre
pres
enta
tions
, or t
he o
verri
de o
f int
erna
l con
trol.
Para
grap
h 39
(b)(i
i) of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to d
escr
ibe
the
audi
tor’s
re
spon
sibi
lity
toob
tain
an
unde
rsta
ndin
g of
inte
rnal
con
trol r
elev
ant t
o th
e au
dit i
n or
der t
o de
sign
au
dit p
roce
dure
s th
at a
re a
ppro
pria
te in
the
circ
umst
ance
s, b
ut n
ot fo
r the
pur
pose
of e
xpre
ssin
g an
op
inio
n on
the
effe
ctiv
enes
s of
the
entit
y’s
inte
rnal
con
trol.
Para
grap
h 39
(b)(i
ii) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to d
escr
ibe
the
audi
tor’s
re
spon
sibi
lity
toev
alua
te th
e ap
prop
riate
ness
of a
ccou
ntin
g po
licie
s us
ed a
nd th
e re
ason
able
ness
of
acco
untin
g es
timat
es a
nd re
late
d di
sclo
sure
s m
ade
by m
anag
emen
t.Au
dit r
epor
ts is
sued
by,
or o
n be
half
of, t
he A
udito
r-Gen
eral
that
exp
ress
an
opin
ion
on p
erfo
rman
ce
info
rmat
ion
desc
ribe
that
the
audi
tor e
valu
ates
the
appr
opria
tene
ss o
f the
repo
rted
perfo
rman
ce
info
rmat
ion
with
in th
e en
tity’
s fra
mew
ork
for r
epor
ting
its p
erfo
rman
ce.
Para
grap
h 39
(b)(i
v) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to d
escr
ibe
the
audi
tor’s
re
spon
sibi
lity
toco
nclu
de o
n th
e ap
prop
riate
ness
of m
anag
emen
t’s u
se o
f the
goi
ng c
once
rn b
asis
of
acc
ount
ing.
Para
grap
h 39
(c) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
of a
gro
up to
sta
te th
e au
dito
r’s re
spon
sibi
litie
s ar
e to
obt
ain
suffi
cien
t app
ropr
iate
aud
it ev
iden
ce re
gard
ing
the
finan
cial
in
form
atio
n of
the
entit
ies
or b
usin
ess
activ
ities
with
in th
e G
roup
to e
xpre
ss a
n op
inio
n on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
, tha
t the
aud
itor i
s re
spon
sibl
e fo
r the
dire
ctio
n, s
uper
visi
on a
nd
perfo
rman
ce o
f the
gro
up a
udit,
and
that
the
audi
tor r
emai
ns s
olel
y re
spon
sibl
e fo
r the
aud
it op
inio
n.
We
com
mun
icat
e w
ith th
e [G
over
ning
bod
y]re
gard
ing,
am
ong
othe
r mat
ters
, the
pla
nned
sc
ope
and
timin
g of
the
audi
t and
sig
nific
ant a
udit
findi
ngs,
incl
udin
g an
y si
gnifi
cant
def
icie
ncie
s in
inte
rnal
con
trol t
hat w
e id
entif
y du
ring
our a
udit.
Our
resp
onsi
bilit
y ar
ises
from
the
Publ
ic A
udit
Act2
001.
Para
grap
h 40
(a) o
f ISA
(NZ)
700
(Rev
ised
) req
uire
s th
e au
dito
r’s re
port
to s
tate
that
the
audi
tor
com
mun
icat
es to
thos
e ch
arge
d w
ith g
over
nanc
e re
gard
ing,
am
ong
othe
r mat
ters
, the
pla
nned
sco
pe
and
timin
g of
the
audi
t and
sig
nific
ant a
udit
findi
ngs,
incl
udin
g an
y si
gnifi
cant
def
icie
ncie
s in
inte
rnal
co
ntro
l tha
t the
aud
itor i
dent
ifies
dur
ing
the
audi
t.
For t
he a
nnua
l aud
it of
a p
ublic
ent
ity, r
efer
ence
sho
uld
be m
ade
to th
e Pu
blic
Aud
it Ac
t 200
1 in
eve
ry
audi
t rep
ort.
Oth
er In
form
atio
n
The
[Gov
erni
ng b
ody]
isre
spon
sibl
e fo
r the
oth
er in
form
atio
n. T
he o
ther
info
rmat
ion
com
pris
es
the
info
rmat
ion
incl
uded
on
page
s [X
Xto
YY]
, but
doe
s no
t inc
lude
the
finan
cial
sta
tem
ents
and
th
e st
atem
ent o
f per
form
ance
, and
our
aud
itor’s
repo
rt th
ereo
n.
Para
grap
h 32
of I
SA (N
Z)70
0 (R
evis
ed) r
equi
res
the
audi
tor t
o re
port
in a
ccor
danc
e w
ith IS
A (N
Z)
720
(Rev
ised
). IS
A (N
Z) 7
20 (R
evis
ed) a
ckno
wle
dges
the
poss
ibilit
y th
at th
e ot
her i
nfor
mat
ion
may
no
t be
avai
labl
e be
fore
the
audi
t has
bee
n co
mpl
eted
, and
spe
cifie
s th
e au
dit r
epor
treq
uire
men
ts in
th
is s
ituat
ion.
AG
ISA
(NZ)
700
(Rev
ised
) For
min
g an
d re
porti
ng a
n op
inio
n
Issu
ed 0
3/17
Offi
ce o
f the
Aud
itor-G
ener
al3
-482
4
Our
opi
nion
on
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of p
erfo
rman
ce d
oes
not c
over
the
othe
r inf
orm
atio
n an
d w
e do
not
exp
ress
any
form
of a
udit
opin
ion
or a
ssur
ance
con
clus
ion
ther
eon.
In c
onne
ctio
n w
ith o
ur a
udit
of th
e fin
anci
al s
tate
men
ts a
ndth
e st
atem
ent o
f per
form
ance
, our
re
spon
sibi
lity
is to
read
the
othe
r inf
orm
atio
n. In
doi
ng s
o, w
e co
nsid
er w
heth
er th
e ot
her
info
rmat
ion
is m
ater
ially
inco
nsis
tent
with
the
finan
cial
sta
tem
ents
and
the
stat
emen
t of
perfo
rman
ce o
r our
kno
wle
dge
obta
ined
in th
e au
dit,
or o
ther
wis
e ap
pear
s to
be
mat
eria
lly
mis
stat
ed. I
f, ba
sed
on o
urw
ork,
we
conc
lude
that
ther
e is
a m
ater
ial m
isst
atem
ent o
f thi
s ot
her
info
rmat
ion,
we
are
requ
ired
to re
port
that
fact
. We
have
not
hing
to re
port
in th
is re
gard
.
Inde
pend
ence
We
are
inde
pend
ent o
f the
[ent
ity ty
pe] i
n ac
cord
ance
with
the
inde
pend
ence
requ
irem
ents
of
the
Audi
tor-G
ener
al’s
Aud
iting
Sta
ndar
ds, w
hich
inco
rpor
ate
the
inde
pend
ence
requ
irem
ents
of
Prof
essi
onal
and
Eth
ical
Sta
ndar
d 1
(Rev
ised
): C
ode
of E
thic
s fo
r Ass
uran
ce P
ract
ition
ers
issu
ed b
y th
e N
ew Z
eala
nd A
uditi
ng a
nd A
ssur
ance
Sta
ndar
ds B
oard
..
Oth
er th
an th
e au
dit,
we
have
no
rela
tions
hip
with
, or i
nter
ests
in, t
he [e
ntity
type
].
Or
[In a
dditi
on to
the
audi
t,w
e ha
ve c
arrie
d ou
t eng
agem
ents
in th
e ar
eas
of [i
nser
t des
crip
tion
of
enga
gem
ents
], w
hich
are
com
patib
le w
ith th
ose
inde
pend
ence
requ
irem
ents
. Oth
er th
an th
e au
dit a
nd th
ese
enga
gem
ents
, we
have
no
rela
tions
hip
with
, or i
nter
ests
in, t
he [e
ntity
type
].]
Para
grap
hs 2
8(c)
, NZ2
8(c)
and
NZ2
8.1
requ
ire s
tate
men
ts to
be
mad
e in
the
audi
tor’s
repo
rt, u
nder
th
e “B
asis
for O
pini
on” h
eadi
ng, a
bout
the
audi
tor’s
inde
pend
ence
. The
sta
tem
ents
requ
ired
are:
28(c
)
Th
at th
e au
dito
r is
inde
pend
ent o
f the
ent
ity in
acc
orda
nce
with
the
rele
vant
eth
ical
re
quire
men
ts re
latin
g to
the
audi
t …N
Z28(
c)
In N
ew Z
eala
nd, t
he s
tate
men
t req
uire
d by
par
agra
ph 2
8(c)
sha
ll re
fer t
o Pr
ofes
sion
al
and
Ethi
cal S
tand
ard
1 (R
evis
ed) C
ode
of E
thic
s fo
r Ass
uran
ce P
ract
ition
ers
issu
ed b
y th
e N
ew Z
eala
nd A
uditi
ng a
nd A
ssur
ance
Sta
ndar
ds B
oard
. N
Z28.
1
The
exi
sten
ce o
f any
rela
tions
hip
(oth
er th
an th
at o
f aud
itor)
whi
ch th
e au
dito
r has
with
, or
any
inte
rest
s w
hich
the
audi
tor h
as in
, the
ent
ity.
In a
udit
repo
rts is
sued
by,
or o
n be
half
of, t
he A
udito
r-Gen
eral
the
requ
ired
stat
emen
ts a
bout
in
depe
nden
ce u
nder
par
agra
phs
28(c
), N
Z28(
c) a
nd N
Z28.
1 ar
e in
clud
ed u
nder
a s
epar
ate
“Inde
pend
ence
” hea
ding
.
[Sig
natu
re o
f App
oint
ed A
udito
r][N
ame
of A
ppoi
nted
Aud
itor]
[Nam
e of
Aud
iting
Firm
]O
n be
half
of th
e Au
dito
r-Gen
eral
[City
], N
ew Z
eala
nd
Para
grap
h N
Z46.
1 of
ISA
(NZ)
700
(Rev
ised
) req
uire
s th
at th
e na
me
of th
e en
gage
men
t par
tner
sha
ll be
incl
uded
in th
e au
dito
r’s re
port
on fi
nanc
ial s
tate
men
ts o
f FM
C e
ntiti
es c
onsi
dere
d to
hav
e a
high
er
leve
l of p
ublic
acc
ount
abilit
y. T
he A
udito
r-Gen
eral
requ
ires
the
nam
e of
the
Appo
inte
d Au
dito
r to
be
incl
uded
in th
e au
dit r
epor
ts o
f all
entit
ies,
follo
wed
by
the
nam
e of
the
firm
of t
he A
ppoi
nted
Aud
itor.
Para
grap
h 47
of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
that
the
audi
tor’s
repo
rt sh
all b
e si
gned
.The
Au
dito
r-Gen
eral
requ
ires
the
sign
atur
e of
the
Appo
inte
d Au
dito
r. If
the
Appo
inte
d Au
dito
r wan
ts to
in
clud
e th
e si
gnat
ure
of th
e Au
dit F
irm, t
his
may
be
incl
uded
alo
ngsi
de th
e si
gnat
ure
of th
e Ap
poin
ted
Audi
tor a
s fo
llow
s:__
____
____
____
____
____
____
____
____
____
____
____
____
___
____
____
____
____
____
____
____
____
____
____
____
____
____
[Sig
natu
re o
f App
oint
ed A
udito
r]
[S
igna
ture
of A
uditi
ng F
irm]
Nam
e of
App
oint
ed A
udito
r]
[N
ame
of A
uditi
ng F
irm]
On
beha
lf of
the
Audi
tor-G
ener
al[C
ity],
New
Zea
land
Ref
er to
par
agra
ph 1
2 of
this
Sta
tem
ent f
or re
quire
men
ts o
n si
gnin
g th
e au
dit r
epor
t.
Para
grap
h 48
of I
SA (N
Z) 7
00 (R
evis
ed) r
equi
res
that
the
audi
tor’s
repo
rt sh
all n
ame
the
loca
tion
whe
re th
e au
dito
r pra
ctis
es.