| 21. | When the auditor addresses other reporting responsibilities within the auditor's report on the financial statements, the opinion arising from such other responsibilities shall be set out in a separate section of the auditor's report following the opinion[s] on the financial statements or, where there is one, the opinion on regularity. (Ref: Para A15 – A16) |
| 22. | If the auditor is required to report on certain matters by exception the auditor shall describe its responsibilities under the heading "Matters on which we are required to report by exception" and incorporate a suitable conclusion in respect of such matters. (Ref: Para A17 – A18) |
| 22A. | In the case of entities that are required6, and those that choose voluntarily, to report on how they have applied the UK Corporate Governance Code or to explain why they have not, the auditor shall report by exception if, when reading the other financial and non- financial information included in the annual report, the auditor has identified information that is materially inconsistent with the information in the audited financial statements or is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by the auditor in the course of performing the audit or that is otherwise misleading. (Ref: Para A18A) |
| 22B. | Matters that the auditor shall report on by exception in accordance with paragraph 22A include circumstances where the annual report includes: |
| (a) | A statement given by the directors that they consider the annual report and accounts taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the entity's performance, business model and strategy, that is inconsistent with the knowledge acquired by the auditor in the course of performing the audit; or |
| (b) | A section describing the work of the audit committee that does not appropriately address matters communicated by the auditor to the audit committee; or |
| (c) | An explanation, as to why the annual report does not include such a statement or section, that is materially inconsistent with the knowledge acquired by the auditor in the course of performing the audit; or |
| (d) | Other information that, in the auditor's judgment, contains a material inconsistency or a material misstatement of fact. |
| The auditor shall include a suitable conclusion on these matters in the auditor's report in accordance with paragraph 22 and, if applicable, shall describe why the auditor believes that any such statement, section, explanation or other information is materially inconsistent with the knowledge acquired by the auditor in the course of performing the audit or otherwise contains a material inconsistency or a material misstatement of fact. If a section of the annual report describing the work of the audit committee does not appropriately disclose any matters communicated by the auditor to the audit committee that in the auditor's judgment should have been disclosed, or if the annual report does not contain such a section, the auditor's report shall also include any such information. |
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