The Auditing Practices Board (the APB) has today published Bulletin 2006/6 entitled – 'Auditor’s Reports on Financial Statements in the United Kingdom'.

The purpose of this Bulletin is to provide illustrative examples of both unmodified and modified auditor’s reports of financial statements of companies incorporated in the United Kingdom for periods commencing on or after 1 April 2005.

This Bulletin is the second edition of the Bulletin referred to in various paragraphs of ISA (UK and Ireland) 700 “The auditor’s report on financial statements”.

The example auditor’s reports included in the Bulletin take account of:

• changes made to the Companies Act 1985 and the Companies (Northern Ireland) Order 1986 to require the auditor to give a positive opinion as to the consistency of the directors’ report with the financial statements.
• the revised standard formulation for expressing compliance with IFRSs as adopted by the European Union.

In response to feedback received on Bulletin 2005/4 the revised Bulletin provides examples of unmodified reports of publicly traded companies that are not required to prepare group accounts.

Richard Fleck, APB Chairman said:

“The wording of the example auditor’s reports in Bulletin 2006/6 is based on current legislative requirements. Further changes to the auditor’s report are likely to be needed if the Companies Bill is enacted in its present form and would only be effective for accounting periods commencing after October 2007. The APB considered whether any of these changes should be introduced before that date, and has concluded that it would be unwise to anticipate legislation that has yet to be finalised. The APB will revisit the position when the Companies Bill has been enacted.”

The Bulletin may be downloaded from the Publications (Bulletins) section of this website. Printed copies, at a cost of £7.00, can be obtained from:

FRC Publications
145 London Road
Kingston upon Thames
Surrey
KT2 6SR

Telephone: 020 8247 1264
E-mail: customer.services@cch.co.uk  
Website: www.frcpublications.com  

1. The Financial Reporting Council (the FRC) is a unified, independent regulator. Its aim is to promote confidence in corporate reporting and governance.
2. The FRC has six operating bodies: the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy Investigation and Discipline Board.
3. The APB is committed to leading the development of auditing practice in the United Kingdom and the Republic of Ireland so as to:
   
   • establish high standards of auditing
     
   • meet the developing needs of users of financial information; and
     
   • ensure public confidence in the auditing process.
     
4. The APB issues Bulletins to provide auditors with timely guidance on new and emerging issues. They are persuasive rather than prescriptive. However, they are indicative of good practice even though they may be developed without the full process of consultation and exposure used for Auditing Standards.
5. For periods commencing on or after 1 April 2005, this Bulletin supersedes Bulletin 2005/4.
6. For further information please contact Jon Grant, APB Executive Director. Tel: 020 7492 2410.