Annex 19.

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Example Of An Unqualified Audit Report

MODEL AUDIT REPORT Unqualified Opinion (For an Organization)

Addressee10 Introductory Paragraph We have audited the accompanying [indicate names of each financial statement] of the XYZ Company as of December 31, 19XX [indicate any other additional years necessary] for the year(s) then ended. These financial statements are the responsibility of [identify Borrower]. Our responsibility is to express an opinion on these financial statements based on our audit. Scope Paragraph We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Opinion Paragraph In our opinion, the financial statements give a true and fair view of the financial position of the XYZ Company as of December 31, 19XX, and of the results of its operations and its cash flows for the year then ended in accordance with [indicate International Accounting Standards or relevant national standards]. [Name and Address of Audit Firm] [Date - Completion Date of Audit] 10 The auditor's report should be appropriately addressed as required by the circumstances of the
engagement and local regulations..140 ANNEX XXI

Annex 19.5

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MODEL AUDIT REPORT Unqualified Opinion

(for Project Financial Statement including SOE)
Addressee"

Introductory Paragraph We have audited the accompanying financial statements of the f [ Project [financed under World Bank Loan No. /IDA as of December 31, 19XX [indicate any other additional years necessary] for the year(s) then ended. Our responsibility is to express an opinion on these financial statements based on our audit. Scope Paragraph We conducted our audit in accordance with International Standards on Auditing [or relevant national standards or practices, and/or World Bank guidelines]. Those Standards and/or World Bank guidelines require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Opinion Paragraph In our opinion, the financial statements give a true and fair view of the Sources and Application of Funds' 2 of ___________ Project for the year ended December 31, 19XX, in accordance with [indicate International Accounting Standards or relevant national standards. Add "financial position" at December 31, l9XX where a balance sheet is required.] In addition, (a) with respect to SOEs, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and (b) which expenditures are eligible for financing under the Loan/Credit Agreement [Ln/Cr. Il. [Name and Address of Audit Firm]
[Date - Completion Date of Audit]

The auditor's report should be appropriately addressed as required by the circumstances of the engagement and local regulations.
A "Source and Application of Funds" statement is always required for each project. A balance sheet is also required where the project has assets and liabilities..ANNEX XXI 141
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Annex 19.5

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MODEL AUDIT REPORT Unqualified Opinion

(Special Account)
Addressee13

Introductory Paragraph We have audited the accompanying [Sources and Application of Funds] of the 'Special Account" of the _______________Project (Loan/Cr. No. _________) for the year ended December 31, 19XX. Our responsibility is to express an opinion on the financial statements of the Special Account based on our audit. Scope Paragraph We conducted our audit in accordance with International Standards on Auditing [or relevant national standards or practices, and/or World Bank guidelines for Special Accounts]. Those Standards and World Bank guidelines require that we plan and perform the audit to obtain reasonable assurance that the Special Account financial statement is free of material misstatement. We believe that our audit provides a reasonable basis for our opinion. Opinion Paragraph In our opinion, the financial statements of the Special Account give a true and fair view of the financial position of the Special Account as of the __________Project (Loan/Cr. No._________ ) December 31, 19XX, for the year then ended in accordance with International Accounting Standards [or relevant national standards and World Bank guidelines], and of the Sources and Application of Funds.. [Name and Address of Audit Firm]
[Date - Completion Date of Audit]

13 The

auditor's report should be appropriately addressed as required by the circumstances of the engagement and local regulations.