2015/16 independent auditor's reports (local authorities)
Technical guidance note 2016/5(LA)
Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. We help the Auditor General for Scotland and the Accounts Commission check that organisations spending public money use it properly, efficiently and effectively.
Prepared by the Technical Services Unit
2 May 2016
Foreword
Technical guidance notes are prepared by Audit Scotland's Technical Services Unit (TSU) to provide external auditors appointed by the Accounts Commission and Auditor General for Scotland with guidance on particular subjects or themes relevant to their audit appointment.  They cover auditors' responsibilities to audit the financial statements, and review returns for whole of government accounts and local authority grant claims.  
Technical guidance notes are available to external auditors from Audit Scotland's Technical reference library, and are also published on the Audit Scotland website so that audited bodies and other stakeholders can access them.
This particular type of technical guidance note is approved by the Assistant Auditor General and provides guidance on reporting the audit of the financial statements, including model independent auditor's reports.  
While auditors act independently, and are responsible for their own conclusions and opinions, the TSU has a role in ensuring that those conclusions and opinions are reached on the basis of informed judgement.  Consistency in similar circumstances is important and the Code of audit practice therefore states that auditors should follow TSU guidance.  Auditors should advise the TSU promptly if they intend not to follow any guidance provided in this technical guidance note.

Audit Scotland makes no representation as to the completeness or accuracy of the contents of technical guidance notes or that legal or technical guidance is correct.  Points of law, in particular, can ultimately be decided only by the Courts.  Audit Scotland accepts no responsibility for any loss or damage caused as a result of any person relying upon anything contained in this note. 

1	Introduction
Introduction 
1.	External auditors are required to provide opinions on local authorities' annual accounts in an independent auditor's report.  
2.	ISA (UK&I) 700 The independent auditor’s report on financial statements (ISA 700) establishes standards on the form and content of the independent auditor’s report.  The Financial Reporting Council's (FRC) Bulletin 2010/2 (Revised) Compendium of illustrative auditor’s reports on United Kingdom private sector financial statements etc provides examples to illustrate the requirements of ISA 700 for the private sector.
3.	The Local Government (Scotland) Act 1973 (the 1973 Act) requires auditors to place a certificate on a local authority's annual accounts and for that audit certificate (i.e. the independent auditors report) to be in the form prescribed by the Accounts Commission.  The Code of audit practice states that model forms of independent auditor’s reports will be provided to local authority auditors by Audit Scotland to meet this statutory requirement.  
Purpose of technical guidance note
4.	The purpose of this technical guidance note from the TSU is to provide those auditors with 'sign off' responsibilities with the model independent auditor's reports which should be used for the 2015/16 annual accounts of local authorities, along with guidance on their use.  The wording of the model independent auditor reports at Appendices 1 to 4 is based on the illustrative examples issued by the FRC tailored to reflect local authority sector legislation and augmented by the reporting requirements of Audit Scotland.
5.	Auditors should complete the checklist at Appendix 5 for each report which provides a list of the key auditor actions set out in this technical guidance note.
Summary of auditor's reporting responsibilities
6.	When reporting on the audit of the annual accounts, auditors of local authorities are required by legislation and international standards on auditing in the UK (ISAs) to express an opinion on whether the financial statements give a true and fair view and are properly prepared in accordance with the applicable financial reporting framework and relevant legislation (see section 2).
7.	Auditors are required by ISA 720 (UK&I) Section A The auditor’s responsibilities relating to other information in documents containing audited financial statements (ISA 720A) to read the information that accompanies the financial statements and report where they identify inconsistencies or apparently incorrect information (see section 2).
8.	Auditors have other reporting responsibilities prescribed by Audit Scotland which are to 
·	express an opinion on whether a specified part of the remuneration report has been properly prepared (see section 3)
·	express an opinion on whether the management commentary (or equivalent report) is consistent with the financial statements (see section 3)
·	report conclusions on other matters by exception, including non-compliance with guidance on the preparation of the annual governance statement (see section 4).
Summary of model reports
9.	The model independent auditor's reports set out in the appendices, and the annual accounts to which they apply, are summarised in the following table

Appendix	Applicable accounts	
1	The annual accounts of councils constituted under section 2 of the Local Government (Scotland) Act 1994 where group financial statements are prepared 	
2	The annual accounts of councils constituted under section 2 of the 1994 Act where group financial statements are not prepared.
The annual accounts of bodies to which section 106(1a) of the 1973 Act applies (e.g. valuation joint boards, joint committees, and regional transport partnerships). From 2015/16, this includes integration joint boards.	
3	The annual accounts of local government pension scheme pension funds administered by local authorities	
4A	The statement of accounts of registered charities that fall under section 106(1b) of the 1973 Act prepared on an accrued basis	
4B	The statement of accounts of registered charities that fall under section 106(1b) of the 1973 Act prepared on a cash basis	
Status of model reports
Auditors should use the model report that applies to the annual accounts on which they are expressing their opinions, tailored to reflect local circumstances.	
Unqualified
10.	In the interests of consistency, auditors are required to use the relevant model in the appendices to this technical guidance note as a condition of their audit appointment.  Unless there are qualifications, the only exception is the text indicated in [square brackets] where amendments will require to be made by auditors to tailor the terminology to reflect local circumstances.  These amendments are explained throughout this technical guidance note but in summary auditors should amend the wording to match precisely the titles used by the local authority for the 
·	list of the financial statements in the introductory paragraph
·	job title of the section 95 proper officer (e.g. Director of Finance)
·	title of the document which contains the audited financial statements referred to in the scope paragraph, e.g. annual accounts
·	name of the statement (or statements) that meet the statutory requirement for a management commentary
·	name of the statement (or statements) that meet the statutory requirement for an annual governance statement.
11.	It should be noted that the requirement to follow the model wording in the appendices applies to the 'Bannerman' paragraph.  
12.	Where the appointed auditor is a member of Audit Scotland staff, the reports should be presented in the first person singular.  Firms should present the report in the first person plural.
13.	If auditors consider that any other amendments are required to reflect local circumstances (e.g. a remuneration report is not required), they should contact the TSU.
Qualified
14.	Any proposed qualification or other modification to any audit opinion or conclusion in the model reports, or the inclusion of 'emphasis of matter' or 'other matter' paragraphs under ISA 706, should be discussed with the TSU in advance of finalising the report.
Changes from 2014/15
15.	The main changes to the guidance and models for 2015/16 from last year are as follows
·	Separate models have been provided to be used depending on whether a council prepares group financial statements.  Appendix 1 should be used when group financial statements are prepared, and Appendix 2 when they are not.
·	Appendix 2 encompasses integration joint boards.
·	Additional clarification has been added in some areas as a result of the findings from a review of the 2014/15 reports. 
Contact point 
16.	The contact point for this technical guidance note is Paul O’Brien (pobrien@audit-scotland.gov.uk or 0131 625 1795).

2	Opinion on financial statements
Purpose of section
17.	This section provides guidance on the paragraphs in the independent auditor's report that relate to expressing an opinion on the financial statements.
Overview
18.	Auditors are required to express an opinion on whether the financial statements give a true and fair view and are properly prepared. 
19.	The Code of audit practice requires auditors to audit the financial statements in accordance with ISAs.  ISA 700 requires the independent auditor's report to have a title, be properly addressed, and contain the following paragraphs in respect of the opinion on the financial statements
·	introductory 
·	respective responsibilities
·	scope of the audit
·	opinion on the financial statements.
Title and addressees
20.	The term 'independent auditor's report' should be used in the title to clearly distinguish it from other required reports, such as the annual audit report.
21.	The independent auditor's report should be addressed to the elected members (trustees for charities) and the Accounts Commission.
Introductory paragraph
Financial statements
Auditors should list in the introductory paragraph the financial statement they have audited, using the precise titles used by the body.	
22.	Auditors are required to identify in the introductory paragraph the financial statements that they have audited.  Regulation 8(2) of 2014 regulations requires the annual accounts to include the financial statements required by proper practices, i.e. the Code of practice on local authority accounting in the UK (the accounting code). Charities legislation sets out the required financial statements for charities.  
23.	The financial statements listed in Appendices 1 to 3 are based on the requirements of, and titles used by, the 2015/16 accounting code (and charities legislation for Appendix 4).  In the event that an authority uses different names or includes other statements, the statements listed by auditors should precisely match the statements and titles actually used.  For example, most authorities present their trust funds and common good funds as separate financial statements, but some auditors did not include them in the list in 2014/15.
Reporting framework
24.	The independent auditor’s report is also required to specify the financial reporting framework that has been applied in the preparation of the financial statements.  In the local authority sector, the framework is
·	for local authorities, international financial reporting standards as adopted by the European Union, and interpreted or adapted by the accounting code
·	for charity accounts prepared on an accrued basis, it is the UK accounting standard
·	for cash-based charity accounts, it is a receipts and payments basis.
'Bannerman' paragraph
25.	The model wording contains a paragraph immediately after the introductory paragraph to recognise the judgement in the case of Royal Bank of Scotland v Bannerman Johnstone Maclay, which highlighted the potential exposure of auditors to third parties who assert that they rely on audit reports where auditors have not expressly disclaimed responsibility to those third parties.
26.	The model wording for the 'Bannerman' paragraph explains that the report is made solely to the parties to whom it is addressed and that auditors do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.  The dispensation which allowed auditors to make minor amendments to this wording in previous years no longer applies.
Respective responsibilities paragraph
Auditors should refer to the proper officer by their actual job title.	
27.	ISA 700 requires the report to state that those charged with governance are responsible for the preparation of the financial statements and that the responsibility of the auditor is to audit and express an opinion on the financial statements in accordance with applicable legal requirements and ISAs.
28.	The proper officer under section 95 of the 1973 Act is responsible for the preparation of local authority financial statements.  When referring to the proper officer in the independent auditor's report, auditors should use the actual job title that is included in the statement of responsibilities.
Scope of the audit paragraph
29.	ISA 700 requires the independent auditor's report to explain the scope of the audit of the financial statements.  It gives the option of either cross referring to a statement on the FRC's website or to a statement included elsewhere within the annual accounts, or including a description of the scope of an audit set out in the ISA.
30.	The model reports remove the first two options and specify the wording of the description that should be included.

Auditors should use the precise title for the document containing the financial statements.	
31.	The wording for the scope of the audit explains that auditors read all the financial and non-financial information in the document containing the financial statements.  When referring to the document in this paragraph, auditors should match precisely the title of the document used by the local authority (e.g. annual accounts).
Opinion on financial statements paragraph 
32.	ISA 700 requires the independent auditor’s report to contain a clear written expression of opinion on the financial statements, based on the auditor evaluating whether
·	sufficient appropriate audit evidence as to whether the financial statements as a whole are free from material misstatement has been obtained
·	uncorrected misstatements are material
·	the financial statements, including the related notes, give a true and fair view and have been prepared in accordance with the applicable financial reporting framework.
33.	Guidance on the key risks of material misstatement in the financial statements is provided by the TSU in Technical guidance note 2015/8(LA).  The guidance in the modules on the financial statement areas highlights what the TSU considers to be the main risks of misstatement in each area. It also sets out actions for each risk that auditors should undertake to assess whether the body has followed the required accounting treatment.  
34.	Auditors are required to clearly state their opinion on the financial statements.  An unqualified opinion should be expressed only when auditors conclude that the financial statements 
·	give a true and fair view of the state of affairs for the year ended 31 March 2016, and the income and expenditure for 2015/16 (or equivalent wording for pension funds and charities)
·	have been properly prepared in accordance with the applicable financial reporting framework
·	have been prepared in accordance with the requirements of the relevant legislation, i.e.
-	the 1973 Act, the Local Government in Scotland Act 2003, and the 2014 regulations
-	for charities, the Charities and Trustee Investment (Scotland) Act 2005 and The Charities Accounts (Scotland) Regulations 2006.
35.	Where auditors conclude that a modification to their opinion is required, they should add a 'basis for modification' paragraph to their report in accordance with ISA 705 (UK&I) Modifications to the opinion in the independent auditor's report (ISA 705).
Basis for modification paragraph
When auditors qualify their opinion on the financial statements, they should
·	discuss the proposed qualification with the TSU 
·	amend the wording in the opinion paragraph
·	include a 'basis for modification' paragraph in the auditor’s report.	
36.	ISA 705 deals with modifications to the auditor’s opinion on the financial statements.  Auditors should modify their opinion when they
·	conclude that, based on the audit evidence obtained, the financial statements as a whole are not free from material misstatement; or
·	are unable to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatement.
37.	ISA 705 establishes three types of modified opinions, i.e. a qualified opinion, an adverse opinion, and a disclaimer of opinion.  Any proposed qualification should be discussed with the TSU in advance of finalising the report.  When auditors qualify their opinion on the financial statements, they should  
·	include a 'basis for modification' paragraph in the auditor’s report that provides a description of the matter giving rise to the modification and
-	place this paragraph immediately before the opinion paragraph 
-	use the heading 'Basis for qualified opinion on the financial statements' (or 'adverse opinion' or 'disclaimer of opinion', as appropriate).
·	use the heading 'Qualified opinion on the financial statements' (or 'Adverse opinion' or  'Disclaimer of opinion', as appropriate) for the opinion paragraph.
Qualified opinion
38.	Auditors should express a qualified opinion when
·	having obtained sufficient appropriate audit evidence, they conclude that misstatements, are material, but not pervasive, to the financial statements (pervasive effects on the financial statements are those that are not confined to specific items of the financial statements or those that are fundamental to users’ understanding); or
·	they are unable to obtain sufficient appropriate audit evidence on which to base the opinion, but conclude that the possible effects on the financial statements of undetected misstatements could be material but not pervasive.  
39.	Material misstatements may relate to 
·	specific amounts in the financial statements.  Auditors should include in the 'basis for qualified opinion' paragraph a description and quantification of the financial effects of the misstatement (unless impracticable, in which case they should state so)
·	narrative disclosures.  Auditors should include in the 'basis for qualified opinion' paragraph an explanation of how the disclosures are misstated
·	the non-disclosure of information required to be disclosed.  Auditors should 
-	describe in the 'basis for qualified opinion' paragraph the nature of the omitted information; and
-	include the omitted disclosures (unless impracticable or prohibited).
40.	When auditors express a qualified opinion due to a material misstatement in the financial statements, they should state in the 'opinion on the financial statements' paragraph that, except for the effects of the matter described in the 'basis for qualified opinion' paragraph, the financial statements give a true and fair view.
41.	Where the qualified opinion results from an inability to obtain sufficient appropriate audit evidence, auditors should 
·	include in the 'basis for qualified opinion' paragraph the reasons for that inability
·	state in the 'opinion on the financial statements' paragraph that, except for the possible effects of the matter described in the basis for qualified opinion paragraph, the financial statements give a true and fair view.
Adverse opinion
42.	Auditors should express an adverse opinion when, having obtained sufficient appropriate audit evidence, they conclude that misstatements are both material and pervasive to the financial statements.  Auditors should state in the 'opinion on the financial statements' paragraph that, in their opinion, because of the significance of the matter described in the 'basis for adverse opinion' paragraph, the financial statements do not give a true and fair view.
Disclaimer of opinion
43.	Auditors should disclaim an opinion when they are unable to obtain sufficient appropriate audit evidence on which to base the opinion, and they conclude that the possible effects on the financial statements of undetected misstatements could be both material and pervasive.  Auditors should
·	amend the 'introductory' paragraph to state that they were engaged to audit the financial statements
·	state in the 'opinion on the financial statements' paragraph that because of the significance of the matter described in the basis for disclaimer of opinion paragraph, they have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion, and accordingly they do not express an opinion on the financial statements.
Emphasis of matter paragraph
When auditors consider it necessary to draw attention to matters that are fundamental to users’ understanding of the financial statements, they should
·	discuss the matter with the TSU
·	include an 'emphasis of matter' paragraph in their report.	
44.	ISA 706 Emphasis of matter paragraphs and other matter paragraphs in the independent auditor's report (ISA 706) deals with additional communication in the independent auditor’s report when the auditor considers it necessary to draw users’ attention to matters that are fundamental to users’ understanding of the financial statements (i.e. an 'emphasis of matter' paragraph).
45.	An 'emphasis of matter' paragraph refers to a matter appropriately presented or disclosed in the financial statements that, in the auditor’s judgment, is of such importance that it is fundamental to users’ understanding of the financial statements.  Any proposed 'emphasis of matter' paragraph should be discussed with the TSU in advance of finalising the report.  
46.	Auditors should
·	include the 'emphasis of matter' paragraph immediately after the 'opinion on financial statements' paragraph 
·	use the heading 'Emphasis of matter', or other appropriate heading
·	include in the paragraph a clear reference to the matter being emphasised and to where relevant disclosures that fully describe the matter can be found in the financial statements
·	indicate that the auditor’s opinion on the financial statements is not modified in respect of the matter emphasised.
Other matter paragraph
When auditors consider it necessary to draw attention to matters that are relevant to users’ understanding of the audit, or they identify other information that requires to be amended, they should
·		discuss the matter with the TSU
·	include an 'other matter' paragraph.	
47.	ISA 706 also deals with additional communication in the independent auditor’s report when the auditor considers it necessary to draw users’ attention to matters that are relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report (i.e. an 'other matter' paragraph).
48.	An 'other matter' paragraph refers to a matter other than those presented or disclosed in the financial statements that, in the auditor’s judgment, is relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report.  
49.	In addition, auditors are required by ISA 720A to read the other information (i.e. the statements, reports and narrative in the document other than the financial statements and notes) to identify 
·	material inconsistencies with the audited financial statements.  
·	any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by auditors in the course of performing the audit.  
50.	Auditors should report in an 'other matter' paragraph uncorrected misstatements identified in the other information (unless the information is in the management commentary - see section 3).  Any proposed 'other matter' paragraph should be discussed with the TSU in advance of finalising the report.  Auditors should 
·	use the heading 'Other matter', or other appropriate heading
·	include this paragraph immediately after the 'opinion on financial statements' paragraph and any 'emphasis of matter' paragraph.
51.	'Other matter' paragraphs are not the appropriate vehicle to deal with the other reporting responsibilities set out in sections 3 and 4 of this technical guidance note.  However, ISA 706 states that an 'other matter' paragraph may be used to draw users' attention to a matter relevant to these other reporting responsibilities.  Where this is the case, the 'other matter' paragraph should be located beside the reporting responsibility to which it relates. 

3	Opinion on other prescribed matters
Purpose of section
52.	This section provides guidance on the paragraphs in the independent auditor's report that relate to expressing an opinion (i.e. positive assurance) on the specified part of the remuneration report and the management commentary.
Overview
53.	ISA 700 requires auditors to address other reporting responsibilities in separate sections of the independent auditor’s report following the opinion on the financial statements.
54.	Auditors are required to express opinions on a specified part of the remuneration report and the management commentary (or equivalent statement) in a section under the heading 'Opinion on other prescribed matters' using the wording in Appendices 1 to 4.  Where one of the opinions is qualified, each opinion should be dealt with separately under its own heading as explained at paragraphs 60 and 67.
Opinion on remuneration report
Introduction
55.	Local authorities are required by the 2014 regulations to publish a remuneration report as part of their annual accounts containing the information set out in the schedule to the regulations (or a statement that no remuneration report is required because no persons have received remuneration that requires to be disclosed).
Auditors' responsibilities
56.	In line with Companies Act 2006 requirements, auditors are required by the Code of audit practice to audit part of the remuneration report and express a separate opinion within their independent auditor's report on whether it has been properly prepared.
57.	Module 8 (section 3) of Technical guidance note 2015/8(LA) provides guidance for auditors on the part of the remuneration report that requires to be audited.  The remainder of the disclosures form part of the other information read by auditors under ISA 720A.  
Unqualified opinion
58.	Where auditors do not qualify their opinion on the remuneration report, the wording of the relevant paragraph in Appendices 1 to 4 should be used unchanged.
Qualified opinion 
When auditors qualify their opinion on the remuneration report, they should
·	discuss the proposed qualification with the TSU 
·	amend the heading of the section 
·	provide a description of the matter giving rise to the qualification.	
59.	Any proposed qualified opinion on the remuneration report should be discussed with the TSU in advance of finalising the auditor's report.  Where auditors express a qualified opinion on the remuneration report, they should
·	include the opinion in its own section using the heading 'Qualified opinion on the remuneration report'
·	provide a concise description of the matter giving rise to the qualification
·	include the opinion on the management commentary in its own section using the heading 'Opinion on other prescribed matter'.
Opinion on consistency with management commentary
Introduction
60.	Regulation 8(2) of the 2014 regulations requires the annual accounts to include a management commentary.  Provided the management commentary meets the requirements of paragraph 3.1.1.2 of the accounting code, a separate explanatory foreword is not required.  The charity regulations require the annual accounts to include a trustees' annual report.  References in the following paragraphs to a management commentary should be read as including the trustees' annual report for charities. 
Auditors' responsibilities
61.	In line with the Companies Act 2006 (and as required by the charity regulations), Audit Scotland requires auditors to express an opinion in the independent auditor's report as to whether the information given in the management commentary is consistent with the financial statements.  Module 8 (section 2) of Technical guidance note 2015/8(LA) provides guidance for auditors.
62.	ISA 720 (UK&I) Section B The auditor's statutory reporting responsibility in relation to directors' reports applies to this reporting responsibility. It explains that inconsistencies include
·	differences between amounts or narrative appearing in the financial statements and the management commentary 
·	differences between the bases of preparation of related items where the figures are not directly comparable and the different bases are not disclosed
·	contradictions between figures in the financial statements and the narrative explanation of those figures in the management commentary.
63.	The opinion should cover any required information that is included by way of a cross-reference to information presented separately from the management commentary.  If an authority uses a different naming convention, auditors should use terminology which precisely matches that used by the authority.
64.	Auditors should also read the management commentary under ISA 720A.
Unqualified opinion
65.	Where auditors do not qualify their opinion on the management commentary, the wording of the relevant paragraph in Appendices 1 to 4 should be used unchanged.
Qualified opinion
When auditors qualify their opinion on the management commentary, they should
·	discuss the proposed qualification with the TSU 
·	amend the heading of the section 
·	provide a description of the matter giving rise to the qualification.	
66.	If auditors are of the opinion that the information in the management commentary is materially inconsistent with the financial statements, and have been unable to resolve the inconsistency, auditors should express a qualified opinion in respect of the management commentary. Any proposed qualified opinion on the management commentary should be discussed with the TSU in advance of finalising the report.
67.	Auditors should
·	include the opinion in its own section using the heading 'Qualified opinion on the management commentary'
·	provide a concise description of the matter giving rise to the qualification, finishing with the sentence 'Except for this matter, in our opinion the information given in the management commentary is consistent with the financial statements'
·	include the opinion on the remuneration report in its own section using the heading 'Opinion on other prescribed matter'.
68.	Auditors are not required to verify, or report on, the completeness of the information in the management commentary.  If, however, auditors become aware that required information has been omitted, auditors should communicate the matter to the proper officer.  This includes situations where the required information is presented separately from the management commentary without appropriate cross-references.

4	Matters reported on by exception
Purpose of section
69.	This section provides guidance on the paragraphs in the independent auditor's report that relate to reporting on the annual governance statement and other matters reported on by exception. 
Overview
70.	Where auditors are required to report on certain matters by exception, ISA 700 requires auditors to describe their responsibilities under the heading 'Matters on which we are required to report by exception', and incorporate a suitable conclusion in respect of such matters.
71.	Audit Scotland requires auditors of local authorities to report by exception (i.e. positive assurance is not required) on the matters explained in the following paragraphs.
Review of annual governance statement 
Auditors should review the annual governance statement and report within their independent auditor's report any non-compliance with relevant requirements.	
72.	Regulation 5 of the 2014 regulations requires local authorities to publish an annual governance statement as part of the annual accounts.  The regulations require the annual governance statement to be prepared in accordance with proper practices in relation to internal control, which are those set out in Delivering good governance in local government: framework published by CIPFA and SOLACE.
73.	The Local Government Pension Scheme (Administration) (Scotland) Regulations 2008 require an administering authority to also prepare and publish a governance compliance statement for the pension fund.  
74.	Auditors are required by the Code of audit practice to review the annual governance statement (and governance compliance statement) and report by exception any non-compliance with relevant requirements.  Module 8 (section 4) and module 9 of Technical guidance note 2015/8(LA) provide guidance for auditors.
75.	Audit Scotland does not require appointed auditors in the public sector to express an opinion on whether the information given in a governance statement is consistent with the financial statements.  Any material inconsistencies should be reported as an 'other matter' paragraph in accordance with ISA 720A.
76.	Local authorities are not required to report compliance with the UK Corporate governance code.  If an authority makes a reference in the annual governance statement to that code, auditors should contact the TSU as this would trigger the additional reporting requirements under ISA 720A.
Failure to achieve a prescribed financial objective 
Auditors should report any failure of a significant trading operation to break even over the three year period 2013/14 to 2015/16 in their independent auditor's report as a failure to achieve a prescribed financial objective.	
77.	Auditors are required by the Code of audit practice to report an authority's failure to achieve a prescribed financial objective.  Auditors are required to report any failure of a significant trading operation to break even over the three year period 2013/14 to 2015/16 in their independent auditors report as a failure to achieve a prescribed financial objective.  Module 7 (section 12) of Technical guidance note 2015/8(LA) provides guidance for auditors. 
Other matters reported by exception
Auditors should report if
·	adequate accounting records have not been kept
·	the financial statements and the part of the remuneration report to be audited are not in agreement with the accounting records
·	they have not received all the information and explanations required for the audit.	
78.	The Companies Act 2006 requires the auditors of companies to report if, in their opinion 
·	adequate accounting records have not been kept
·	the financial statements and the part of the remuneration report to be audited are not in agreement with the accounting records
·	they have not received all the information and explanations required for the audit.
79.	Audit Scotland requires appointed auditors in the public sector to also report on these matters.
Suitable conclusion on matters reported by exception
When auditors consider there is a matter to be reported by exception, they should
·	discuss the matter with the TSU 
·	amend the wording of the section 
·	provide a description of the matter being reported. 	
80.	Auditors should report a suitable conclusion on matters reported by exception.  Where auditors have nothing to report on any of these matters, they should use the conclusion wording in Appendices 1 to 4 which is 'I/We have nothing to report in respect of these matters'.
81.	Where auditors consider there is a matter to be reported, they should discuss it with the TSU in advance of finalising the auditor's report.  Where there is a matter to report, auditors should
·	modify the conclusion to 'I/We have the following to report in respect of these matters'.  
·	provide a concise description of the matter being reported
·	finish with the sentence 'I/We have nothing to report in respect of the other matters'.

5	Signing and dating independent auditor's reports
Purpose of section
82.	This section provides guidance on signing and dating the independent auditor's report, as well as its recommended positioning in the document. 
Overview
Auditors should 
·	sign and date the report on or after the authorised for issue date
·	sign the report on behalf of the firm (firms only)
·	give the full date and postal address
·	satisfy themselves that the report is appropriately positioned within the document.	
83.	ISA 700 requires independent auditor's reports to state the name of the auditor and be signed and dated.  
Signing
84.	For audits where the auditor is a member of Audit Scotland staff, the individual should sign the report in their own name.
85.	Where the auditor is a firm, for consistency with the Companies Act 2006, the report should be signed in their own name by the partner or other individual who is responsible for issuing the report for and on behalf of the firm.
86.	Auditors should not sign themselves as 'senior statutory auditor'.
Dating
87.	The date of the independent auditor’s report should be the date on which the auditor actually signs the report.  Auditors should give the actual day, month and year of their signature, e.g. 30 September 2016.  Auditors should not date (and hence sign) the report earlier than the date on which the financial statements have been approved by those charged with governance (i.e. the authorised for issue date) and the auditor has considered all necessary available evidence.
88.	Auditors should aim to date the report on the date the annual accounts are authorised for issue by the proper officer.  If the date on which the auditor signs the report is later than the authorised for issue date, auditors should 
·	obtain assurance that those charged with governance would have approved the financial statements on that later date (e.g. by obtaining confirmation from the proper officer)
·	ensure that audit procedures for reviewing subsequent events cover the period up to that date.
Address
89.	ISA 700 requires the report to name the location of the office where the auditor is based.  Auditors should give the full postal address of their office.
Positioning of report
90.	Although there is no specific requirement regarding the positioning of the independent auditor's report, the TSU considers it to be good practice for it to appear either immediately before or after the financial statements. Auditors are encouraged to discuss this matter with local authorities and satisfy themselves that their report is positioned within the document so that it is given appropriate, but not undue, prominence.

Appendix 1
Model independent auditor’s report – councils (group)
Independent auditor’s report to the members of [insert name of council] and the Accounts Commission for Scotland
[I/We] certify that [I/we] have audited the financial statements of [insert name of council] and its group for the year ended 31 March 2016 under Part VII of the Local Government (Scotland) Act 1973.  The financial statements comprise [insert the precise titles of the financial statements used by the council, e.g. the group and council-only Comprehensive Income and Expenditure Statements, Movement in Reserves Statements, Balance Sheets, and Cash-Flow Statements, the authority-only Housing Revenue Account Income and Expenditure Statement, the Movement on the Housing Revenue Account Statement, the Council Tax Income Accounts, and the Non-domestic Rate Account] and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2015/16 (the 2015/16 Code).
This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose.  In accordance with paragraph 125 of the Code of Audit Practice approved by the Accounts Commission for Scotland, [I/we] do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Respective responsibilities of the [insert job title of proper officer] and auditor
As explained more fully in the Statement of Responsibilities, the [insert job title of proper officer] is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. [My/Our] responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Those standards require [me/us] to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the circumstances of the council and its group and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the [insert job title of proper officer]; and the overall presentation of the financial statements. In addition, [I/we] read all the financial and non-financial information in the [insert precise title of document containing the financial statements, e.g. annual accounts] to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by [me/us] in the course of performing the audit. If [I/we] become aware of any apparent material misstatements or inconsistencies [I/we] consider the implications for [my/our] report.
Opinion on financial statements
In [my/our] opinion the financial statements:
·	give a true and fair view in accordance with applicable law and the 2015/16 Code of the state of the affairs of the council and its group as at 31 March 2016 and of the income and expenditure of the council and its group for the year then ended;
·	have been properly prepared in accordance with IFRSs as adopted by the European Union, as interpreted and adapted by the 2015/16 Code; and
·	have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003.
Opinion on other prescribed matters
In [my/our] opinion:
·	the part of the Remuneration Report to be audited has been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014; and
·	the information given in the [insert precise name of statement(s) meeting the requirement for a Management Commentary] for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which [I am/we are] required to report by exception
[I am/We are] required to report to you if, in [my/our] opinion:
·	adequate accounting records have not been kept; or
·	the financial statements and the part of the Remuneration Report to be audited are not in agreement with the accounting records; or
·	[I/we] have not received all the information and explanations [I/we] require for [my/our] audit; or
·	the [insert precise title of statement meeting the requirement for an Annual Governance Statement] has not been prepared in accordance with Delivering Good Governance in Local Government; or
·	there has been a failure to achieve a prescribed financial objective.
[I/We] have nothing to report in respect of these matters.
[Signature]
[Name of individual auditor], (for and on behalf of [name of firm] - firms only)
[Full postal address]
[Insert full date]

Appendix 2
Model independent auditor’s report – councils and section 106 bodies (non-group)
Independent auditor’s report to the members of [insert name of council/body] and the Accounts Commission for Scotland
[I/We] certify that [I/we] have audited the financial statements of [insert name of council/body] for the year ended 31 March 2016 under Part VII of the Local Government (Scotland) Act 1973.  The financial statements comprise [insert the precise titles of the financial statements used by the council/body, e.g. the Comprehensive Income and Expenditure Statement, Movement in Reserves Statement, Balance Sheet, Cash-Flow Statement, Housing Revenue Account Income and Expenditure Statement, the Movement on the Housing Revenue Account Statement, the Council Tax Income Accounts, and the Non-domestic Rate Account] and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2015/16 (the 2015/16 Code).
This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose.  In accordance with paragraph 125 of the Code of Audit Practice approved by the Accounts Commission for Scotland, [I/we] do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Respective responsibilities of the [insert job title of proper officer] and auditor
As explained more fully in the Statement of Responsibilities, the [insert job title of proper officer] is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. [My/Our] responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Those standards require [me/us] to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the circumstances of the [council/body] and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the [insert job title of proper officer]; and the overall presentation of the financial statements. In addition, [I/we] read all the financial and non-financial information in the [insert precise title of document containing the financial statements, e.g. annual accounts] to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by [me/us] in the course of performing the audit. If [I/we] become aware of any apparent material misstatements or inconsistencies [I/we] consider the implications for [my/our] report.
Opinion on financial statements
In [my/our] opinion the financial statements:
·	give a true and fair view in accordance with applicable law and the 2015/16 Code of the state of the affairs of the [council/body] as at 31 March 2016 and of the income and expenditure of the [council/body] for the year then ended;
·	have been properly prepared in accordance with IFRSs as adopted by the European Union, as interpreted and adapted by the 2015/16 Code; and
·	have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003.
Opinion on other prescribed matters
In [my/our] opinion:
·	the part of the Remuneration Report to be audited has been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014; and
·	the information given in the [insert precise name of statement(s) meeting the requirement for a Management Commentary] for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which [I am/we are] required to report by exception
[I am/We are] required to report to you if, in [my/our] opinion:
·	adequate accounting records have not been kept; or
·	the financial statements and the part of the Remuneration Report to be audited are not in agreement with the accounting records; or
·	[I/we] have not received all the information and explanations [I/we] require for [my/our] audit; or
·	the [insert precise title of statement meeting the requirement for an Annual Governance Statement] has not been prepared in accordance with Delivering Good Governance in Local Government; or
·	there has been a failure to achieve a prescribed financial objective.
[I/We] have nothing to report in respect of these matters.
[Signature]
[Name of individual auditor], (for and on behalf of [name of firm] - firms only)
[Full postal address]
[Insert full date]

Appendix 3
Model independent auditor’s report – local government pension scheme pension funds
Independent auditor’s report to the members of [insert name of council] as administering body for [insert name of pension fund(s)] and the Accounts Commission for Scotland 
[I/We] certify that [I/we] have audited the financial statements of [insert name of pension fund(s)] for the year ended 31 March 2016 under Part VII of the Local Government (Scotland) Act 1973.  The financial statements comprise [insert the precise titles of the financial statements used by the council, e.g. the fund account, the net assets statement] and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2015/16 (the 2015/16 Code).
This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose.  In accordance with paragraph 125 of the Code of Audit Practice approved by the Accounts Commission for Scotland, [I/we] do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Respective responsibilities of the [insert job title of proper officer] and auditor
As explained more fully in the Statement of Responsibilities, the [insert job title of proper officer] is responsible for the preparation of financial statements and for being satisfied that they give a true and fair view. [My/Our] responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Accounts Commission for Scotland.  Those standards require [me/us] to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the fund’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the [insert job title of proper officer]; and the overall presentation of the financial statements. In addition, [I/we] read all the financial and non-financial information in the [insert precise title of document containing the financial statements, e.g. annual report] to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by [me/us] in the course of performing the audit. If [I/we] become aware of any apparent material misstatements or inconsistencies [I/we] consider the implications for [my/our] report.
Opinion on financial statements
In [my/our] opinion the financial statements:
·	give a true and fair view in accordance with applicable law and the 2015/16 Code of the financial transactions of the fund during the year ended 31 March 2016, and of the amount and disposition at that date of its assets and liabilities;
·	have been properly prepared in accordance with IFRSs as adopted by the European Union, as interpreted and adapted by the 2015/16 Code; and
·	have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003.
Opinion on other prescribed matter
In my opinion the information given in the [insert precise title of statement meeting the requirement for a Management Commentary] for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which [I am/we are] required to report by exception
[I am/We are] required to report to you if, in [my/our] opinion:
·	adequate accounting records have not been kept; or
·	the financial statements are not in agreement with the accounting records; or
·	[I/we] have not received all the information and explanations [I/we] require for [my/our] audit; or
·	the [insert precise title of statement meeting the requirement for an Annual Governance Statement] has not been prepared in accordance with Delivering Good Governance in Local Government; or
·	the [insert precise title of statement meeting the requirement for a Governance Compliance Statement] does not comply with guidance from the Scottish Ministers.
[I/We] have nothing to report in respect of these matters.
[Signature]
[Name of individual auditor], (for and on behalf of [name of firm] - firms only)
[Full postal address]
[Insert full date]

Appendix 4A
Model independent auditor’s report – registered section 106 charities (Fully accrued accounts)
Independent auditor’s report to the trustees of [insert name of charity] and the Accounts Commission for Scotland
[I/We] certify that [I/we] have audited the financial statements of [insert name of charity] for the year ended 31 March 2016 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005.  The financial statements comprise [insert the precise titles of the financial statements used by the charity, e.g. the statement of the financial activities, the balance sheet] and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standard (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose.  In accordance with paragraph 125 of the Code of Audit Practice approved by the Accounts Commission for Scotland, [I/we] do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Respective responsibilities of the trustees and auditor
As explained more fully in the [insert title of statement of responsibilities, e.g. Statement of Responsibilities of the Trustees, or delete phrase if no statement], the trustees are responsible for the preparation of the financial statements which give a true and fair view. [My/Our] responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Those standards require [me/us] to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts or disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, [I/we] read all the financial and non-financial information in the [insert the precise title of document containing the financial statements, e.g. statement of accounts] to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by [me/us] in the course of performing the audit. If [I/we] become aware of any apparent material misstatements or inconsistencies [I/we] consider the implications for [my/our] report.
Opinion on financial statements
In [my/our] opinion the financial statements:
·	give a true and fair view of the state of the charity’s affairs as at 31 March 2016 and of its incoming resources and application of resources for the year then ended;
·	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
·	have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of The Charities Accounts (Scotland) Regulations 2006.
Opinion on other prescribed matter
In [my/our] opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which [I am/we are] required to report by exception
[I am/We are] required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in [my/our] opinion:
·	proper accounting records have not been kept; or
·	the financial statements are not in agreement with the accounting records; or
·	[I/we] have not received all the information and explanations [I/we] require for [my/our] audit.
[I/We] have nothing to report in respect of these matters.

[Signature]
[Name of individual auditor], (for and on behalf of [name of firm] - firms only)
[Full postal address]
[Insert full date]
[insert name of auditor] is eligible to act as an auditor in terms of [insert either section 1212 of the Companies Act 2006 (for firms)/Part VII of the Local Government (Scotland) Act 1973 (Audit Scotland and firms where auditor is not eligible under the Companies Act)].

Appendix 4B
Model independent auditor’s report – registered section 106 charities (Receipts and payments accounts)
Independent auditor’s report to the trustees of [insert name of charity] and the Accounts Commission for Scotland
[I/We] certify that [I/we] have audited the financial statements of [insert name of charity] for the year ended 31 March 2016 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005.  The financial statements comprise [insert the precise titles of the financial statements used by the charity, e.g. the receipts and payments account, statement of balances] and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and a receipts and payments basis.
This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose.  In accordance with paragraph 125 of the Code of Audit Practice approved by the Accounts Commission for Scotland, [I/we] do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Respective responsibilities of the trustees and auditor
As explained more fully in the [insert title of statement of responsibilities, e.g. Statement of Responsibilities of the Trustees, or delete phrase if no statement], the trustees are responsible for the preparation of the financial statements which properly present the receipts and payments of the charity.  [My/Our] responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Those standards require [me/us] to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts or disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, [I/we] read all the financial and non-financial information in the [insert title of document containing the financial statements, e.g. statement of accounts] to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by [me/us] in the course of performing the audit. If [I/we] become aware of any apparent material misstatements or inconsistencies [I/we] consider the implications for [my/our] report.
Opinion on financial statements
In [my/our] opinion the financial statements:
·	properly present the receipts and payments of the charity for the year ended 31 March 2016 and its statement of balances at that date; and
·	have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulations 9(1),(2) and (3) of The Charities Accounts (Scotland) Regulations 2006.
Opinion on other prescribed matter
In [my/our] opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which [I am/we are] required to report by exception
[I am/We are] required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in [my/our] opinion:
·	proper accounting records have not been kept; or
·	the financial statements are not in agreement with the accounting records; or
·	[I/we] have not received all the information and explanations [I/we] require for [my/our] audit.
[I/We] have nothing to report in respect of these matters.

[Signature]
[Name of individual auditor], (for and on behalf of [name of firm] - firms only)
[Full postal address]
[Insert full date]

[Insert name of auditor] is eligible to act as an auditor in terms of [insert either section 1212 of the Companies Act 2006 (for firms)/Part VII of the Local Government (Scotland) Act 1973 (Audit Scotland and firms where auditor is not eligible under the Companies Act)]. 

Appendix 5
Auditor action checklist
	Yes/No/N/A	Initials/date	W/P ref	
1	Have you used the correct model report for the council, body, fund or charity?
				
2	Have you presented the reports in the correct person (i.e. singular for Audit Scotland staff, plural for firms)? 
				
3	In the list of financial statements in the introductory paragraph, have you listed the actual statements and precise titles used by the body? 
				
4	In the scope paragraph, have you used the precise title of the document containing the audited financial statements? 
				
5	In the references to the proper officer, have you used their actual job title?
				
6	In the opinion on the management commentary, have you used the actual statement(s) and precise titles used by the body?
				
7	In the conclusion on the annual governance statement, have you used the precise title used by the body?
				
8	Have you discussed with the TSU any other amendments required to the wording to reflect local circumstances?
				
9	Have you discussed with the TSU any proposed qualifications to audit opinions or conclusions, or ISA 706 paragraphs?
				
10	Have you 
·	signed and dated the report on or after the authorised for issue date?
·	signed the report on behalf of the firm (firms only)?
·	given the full date and postal address?
·	satisfied yourself that the auditor's report is appropriately positioned?