Audit reports
An audit report is an independent evaluation of a corporation's financial report.
Corporations that need an audit report
Your corporation must lodge an audit report each year if it’s a:
- small corporation with a Consolidated Gross Operating Income (CGOI) of more than $100,000
- medium corporation
- large corporation.
Small corporations with a CGOI of $100,000 or less don’t have to do an audit report.
Consolidated gross operating income is the total value of the money made by the corporation and any entities it controls.
Learn more about:
Timing for audit reports
Lodge your audit report between 1 July and 31 December each year unless you have an exemption or extension.
Contents of audit reports
The auditor will report on whether:
- the financial report is in line with the CATSI Act
- the financial report meets any extra reporting requirements from the Registrar
- the auditor received enough information, explanations, and assistance
- the corporation has kept the financial records needed to prepare and audit the financial report
- the corporation has maintained other records and registers required under the CATSI Act.
The auditor must form their opinions in line with the Australian Auditing Standards.
The audit report must include any statements and disclosures required by the auditing standards. It must say whether the financial statements:
- fairly present the financial transactions according to accounting standards
- are based on proper accounts and records.
If the financial report does not comply with an accounting standard, the auditor must quantify the effect of the non-compliance. If it’s not practical to do this, the report must explain why.
Compilation reports
Compilation reports are different to audit reports. They’re prepared by an accountant in instead of an auditor. A compilation report:
- has a cover letter stating that the attached financial statements are based on the information provided by management
- doesn’t provide any opinion or assurance on the financial statement balances.
Find an auditor
Audit reports must be done by an independent auditor.
Learn more about who can be an auditor and how to find one.
Representation from directors and management
Before giving their independent opinion, auditors will seek representation from directors. Directors will provide a management representation letter that confirms:
- the accuracy of the provided information
- that all important details have been given to the auditors.
The auditor may also seek representation on specific matters if the evidence isn’t available.
Learn more
See our corporation reporting guide for auditors, accountants and bookkeepers or learn more about accounting standards on the Australian Accounting Standards Board website.
