XYZ ASSOCIATION (NON-REPORTING) INC

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF XYZ ASSOCIATION (NON-REPORTING) INC

We have audited the accompanying financial report, being a special  purpose financial report, of XYZ Association (Non-reporting) Inc (the association), which comprises the statement of financial position as at 31 December 2010, the statement of comprehensive income for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by members of the committee.

Committee’s Responsibility for the Financial Report
The committee of XYZ Association (Non-reporting) Inc are responsible for  the preparation of the financial report, and have determined that the basis of preparation described in Note 1, is appropriate to meet the requirements of the Associations Incorporation Act [insert name of state and year if applicable] and is appropriate to meet the needs of the members. The committees’ responsibility also includes such internal control as the committee determine is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We have conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about  the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the association’s preparation of the financial report that gives a true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the association’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the committee, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor’s Opinion
In our opinion, the financial report presents fairly, in all material respects, the financial position of XYZ Association (Non-reporting) Inc as at 31 December 2010 and its financial performance and its cash  flows for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements, and  the Associations Incorporation Act [insert name of state and year if applicable].

Basis of Accounting (1)
Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist XYZ Association (Non-reporting) Inc to meet the requirements of the Associations Incorporation Act [insert name of state and year if applicable]. As a result, the financial report may not be suitable for another purpose.



(1). The auditor may consider it appropriate to indicate that the auditor’s report is intended solely for specific users which may be achieved by restricting the distribution of use of the auditor’s report. This may be achieved by expanding this paragraph to include these restrictions and modifying the heading to state ‘Basis of Accounting & Restriction on Distribution’.


Contact

Rob Mackay
T +61 3 8635 1800
rmackay@moorestephens.com.au

www.moorestephens.com.au