AG ISA (NZ) 700 (Revised) Forming and reporting …AG ISA (NZ) 700 (Revised) Forming and reporting...

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



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.



(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:



“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).



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.



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



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



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:



“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.



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.



- 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).



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.



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.



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

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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.

AG ISA (NZ) 700 (Revised) Forming and reporting …AG ISA (NZ) 700 (Revised) Forming and reporting...

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Transcript of AG ISA (NZ) 700 (Revised) Forming and reporting …AG ISA (NZ) 700 (Revised) Forming and reporting...