The Auditor’s Report
The auditor’s opinion is on the investor’s financial report which includes the equity accounting adjustments. The auditor’s report is prepared in accordance with ASA 700 Forming an Opinion and Reporting on a Financial Report and where appropriate, ASA 800 Special Considerations-Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks.
In those cases where the auditor of the investor is unable to obtain sufficient appropriate audit evidence, there may be a limitation on the scope of the audit. In such cases, the auditor complies with the requirements in ASA 705 Modifications to the Opinion in the Independent Auditor’s Report.
Where a significant uncertainty about the associate exists, the resolution of which may materially affect the financial report, the auditor complies with the requirements in ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report.