| 1. | This International Standard on Auditing (UK and Ireland) (ISA (UK and Ireland)) establishes standards and provides guidance on the form and content of the auditor's report issued as a result of an audit performed by an independent auditor of the financial statements. |
| 2. | This ISA (UK and Ireland) is written to address both "true and fair frameworks1 " and "compliance frameworks". A "true and fair framework" is one that requires compliance with the framework but which acknowledges that to achieve a true and fair view: |
| (a) | It may be necessary to provide disclosures additional to those specifically required by the framework2; and |
| (b) | It may be necessary to depart from a requirement of the framework3. |
| A "compliance framework" is one that requires compliance with the framework and does not contain the acknowledgements in (a) or (b) above. |
| 3. | Illustrative examples of auditor's reports tailored for use with audits conducted in accordance with ISAs (UK and Ireland) are provided in compendia Bulletins issued by the FRC4. Illustrative examples of auditor's reports on regulatory returns are provided in various Practice Notes issued by the FRC. |
| 4. | ISA (UK and Ireland) 705 and ISA (UK and Ireland) 706 deal with how the form and content of the auditor's report are affected when the auditor expresses a modified opinion or includes an Emphasis of Matter paragraph or an Other Matter paragraph in the auditor's report. |
| 1 True and fair frameworks are sometimes referred to as "fair presentation frameworks". |
| 2 In the IFRS Framework this is acknowledged in paragraph 17(c) of IAS 1. In UK GAAP this is acknowledged in Sections 396(4) and 404(4) of the Companies Act 2006. Under Generally Accepted Accounting Practice in Ireland this is acknowledged, for example, in Section 3(c) of the Companies (Amendment) Act 1986 and Regulation 14 of the European Communities (Companies: Group Accounts) Regulations 1992. |
| 3 This is sometimes referred to as the "true and fair override". In the IFRS Framework this is acknowledged in paragraph 19 of IAS 1. In UK GAAP this is acknowledged in Sections 396(5) and 404(5) of the Companies Act 2006. Under Generally Accepted Accounting Practice in Ireland this is acknowledged, for example, in Section 3(d) of the Companies (Amendment) Act 1986 and Regulation 14(3) of the European Communities (Companies: Group Accounts) Regulations 1992. |
| 4 At the date of publication of this ISA (UK and Ireland), Bulletins 2010/2 (Revised) "Compendium of Illustrative Auditor's Reports on United Kingdom Private Sector Financial Statements for periods ended on or after 15 December 2010" and 1(I) "Compendium of Illustrative Auditor's Reports on Irish Financial Statements" were the current compendia Bulletins. |
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