Financial statements prepared in accordance with IFRS and a national
reporting framework
For financial statements to have been prepared in accordance with more than one financial
reporting framework, they must comply with each of the indicated frameworks individually.
A set of financial statements prepared in accordance with one framework containing a note
or supplementary statement reconciling the financial statements to the other is not sufficient.
In practice, simultaneous compliance with both IFRSs and a national financial reporting
framework is unlikely unless the country has adopted IFRSs as its national framework.
The auditor considers each framework separately. It is therefore possible to express an
unqualified opinion on compliance with one framework and a qualified/adverse opinion on
compliance with the other.
Additionally, it may be possible for non-compliance with one financial reporting framework to
cause failure to comply with the other financial reporting framework, in which case a
modified opinion would be issued on compliance with both frameworks
ISA 600: Using the work of another auditor The principal auditor has responsibility for the opinion on the group financial statements. In most countries this responsibility is not diminished by reliance on the work of the other auditors of the subsidiary companies or associates. The auditors of the subsidiary companies are a source of evidence only. The principal auditor must decide how much reliance he will place on the work performed by these other auditors. In order to do this he will consider the qualifications, experience and resources of the other auditors. Generally the principal auditor should have the right to ask the other company auditors for all reasonable information and explanations required to form the audit opinion. ISA 600 states that the other auditors should co-operate with the principal auditor.
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