Special auditors report for abridged financial statements

Where a company is availing of the exemption from filing full financial statements and annexing to its annual return abridged financial statements (small or medium), a copy of a special report of the statutory auditors of the company to the directors must accompany the abridged financial statements (Section 356).

This special report will contain:
• A statement by the auditors that in their opinion the directors are entitled to annex abridged financial statements to the annual return and the abridged financial statements are properly prepared;
• A copy of the full statutory auditors report.

An illustration of a special auditor’s report is set out below:

Illustrated disclosure of special auditor’s report:

On [x date] we reported as auditors of ABC Limited to the directors of the company on the abridged financial statements for the financial year ended 31 December 2015 and our report was as follows:

We have examined:

(i) the abridged financial statements for the financial year ended 31 December 2015 which the directors of ABC Limited propose to annex to the Annual return of the company; and

(ii) the financial statements to be laid before the Annual general meeting, which form the basis for those abridged financial statements.

This report is made solely to the company’s directors in accordance with Section 356 of the Companies Act 2014.

Our work was undertaken so that we might state to the directors those matters we are required to state to them in our report under Section 356 and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company’s directors for our work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

It is your responsibility to prepare the abridged financial statements which comply with the Companies Act, 2014. It is our responsibility to form an independent opinion that the directors are entitled under Section 352 of the Companies Act, 2014 to annex abridged financial statements to the annual return of the company and that those abridged financial statements have been properly prepared pursuant to section [353/354]* of that Act and to report our opinion to you.

Basis of opinion

We have carried out the procedures we consider necessary to confirm, by reference to the financial statements, that the company is entitled to annex abridged financial statements to the Annual return of the company and that the abridged financial statements are properly prepared. The scope of our work for the purpose of this report did not include examining or dealing with events after the date of our report on the full financial statements.

Opinion

In our opinion the directors are entitled under Section 352 of the Companies Act, 2014 to annex to the Annual return of the company the abridged financial statements and those abridged financial statements have been properly prepared pursuant to the provisions of section [353/354]* of that Act.

Other information

On [x date] we reported as auditors of ABC Limited to the members on the company’s financial statements for the financial year ended 31 December 2015 to be laid before its Annual general meeting and our report was as follows:

 

[insert copy of full audit report]

 

[Signature and details of auditor]

 

* Section 353 is the correct reference for a small company. Section 354 is the correct reference for a medium company)