Investor Presentaiton
KPMG
HKSA
700.24(c)
HKAS 1.10A
S406
HKSA 700.30
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The auditor's report illustrated here is prepared with reference to Illustration 2 of the Appendix to HKSA 700 (Revised).
It is a common local practice to disclose the place of incorporation of the company in the auditor's report.
The auditor's report illustrated here is suitable for companies incorporated under the CO preparing consolidated financial statements.
Example auditor's reports for Chinese Mainland, Cayman Islands and Bermuda incorporated companies listed on the Stock Exchange of
Hong Kong are included at the end of Appendix G to this Guide.
Paragraph 24(c) of HKSA 700 (Revised) requires the title of each of the statements that comprise the complete set of financial
statements be identified in the opinion section of the auditor's report. As HK Listco has chosen to present income and expenses using a
two-statement format, i.e. by presenting both a consolidated statement of profit or loss and a consolidated statement of profit or loss
and other comprehensive income (see footnote 47), the opinion section of the auditor's report has identified both the consolidated
statement of profit or loss and the consolidated statement of profit or loss and other comprehensive income as parts of the complete
set of financial statements.
Amendments to HKAS 1, Presentation of financial statements and HKFRS Practice Statement 2, Making materiality judgements:
Disclosure of accounting policies, effective for annual periods beginning on or after 1 January 2023, clarify that an entity is required to
disclose its "material" rather than "significant" accounting policy (see note 1(c) and footnote 80). The opinion paragraph in this
illustrative auditor's report has been updated to align with the amendments.
Section 406 of the CO specifically requires the terms "financial position" and "financial performance" to be used in statement of the
auditor's opinion.
Although not required, companies that are not incorporated under the CO may also adopt the above terminology to align with the
Hong Kong practice, unless there is requirement to the contrary in the company laws of their country of incorporation.
For audits of complete sets of general purpose financial statements of listed entities, the auditor is required to describe key audit
matters in the auditor's report in accordance with HKSA 701. "Key audit matters" are those matters that, in the auditor's professional
judgement, were of most significance in the audit of the financial statements of the current period.
The auditor should describe each key audit matter by using an appropriate subheading and by including the following information:
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a reference to any related financial statement disclosures;
an explanation as to why the matter was considered to be of most significance in the audit; and
a description of how the matter was addressed in the audit.
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