Financial Audit Services
The Financial Audit Services unit reports ultimately to the Auditor-General but is directly responsible to the Deputy Auditor-General. The day-to-day operations of the unit are managed by the Assistant Auditor-General – Financial Audit Services.
The unit, as its name implies, undertakes annual financial audits. The unit is divided into five teams that are run by the Group Leaders – Financial Audit (refer to organisational chart for more details).
Any audit assignment that relates to forming an opinion on the annual financial statements of Tasmanian State entities is a financial audit. In Tasmania there are approximately 170 State entities. These audits provide independent assurances to Parliament and the community that the information presented in the financial statements of the State entities is presented fairly, in all material respects, in accordance with the Australian Accounting Standards.
Financial audits are conducted using a risk-based methodology that involves designing audit procedures to address identified entity and system risks. The financial audit methodology requires the extensive use of audit software during the planning, execution and finalisation phases, together with the use of data analysis techniques where appropriate. The methodology and techniques used ensure that the audits are conducted in the most efficient manner and that audit reports on financial statements are provided on a timely manner.
The outcome of a financial statement audit is an audit report which can be “unmodified” (unqualified) or “modified” (qualified). Audit reports can also include an emphasis of matter paragraph whereby the users’ attention is drawn to a matter included in the financial statements that is fundamental to the users’ understanding of those statements.
The Auditor-General will issue an unqualified audit report when he/she forms the opinion that the financial statements present fairly, in all material respects, the affairs and transactions of the client. In the case of a qualified audit report, the Auditor-General forms the opinion that the financial statements are not free from material misstatement or he has not been able to obtain sufficient appropriate audit evidence.