Audit report

Annual Report 2014/15.

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INDEPENDENT AUDITOR’S REPORT

TO THE READERS OF THE CONTROLLER AND AUDITOR-GENERAL’S
FINANCIAL STATEMENTS AND NON-FINANCIAL PERFORMANCE INFORMATION
FOR THE YEAR ENDED 30 JUNE 2015

We have been appointed by the House of Representatives to carry out the audit of the financial statements and non-financial performance information included in the annual report of the Controller and Auditor-General for the year ended 30 June 2015.

We have audited:

  • the financial statements of the Controller and Auditor-General on pages 43 to 70, that comprise the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2015, the statement of comprehensive revenue and expense, statement of changes in equity, statement of cash flows, statement of output expenses, other expenses and capital expenditure against appropriations, and statement of unappropriated expenditure for the year ended on that date, and the notes to the financial statements that include accounting policies and other explanatory information; and
  • the non-financial performance information of the Controller and Auditor-General that comprises the statement of service performance on pages 14 to 34.

Opinion

In our opinion:

  • the financial statements of the Controller and Auditor-General on pages 43 to 70:
    • comply with generally accepted accounting practice in New Zealand and have been prepared in accordance with Public Benefit Entity (PBE) Accounting Standards issued by the External Reporting Board;
    • present fairly, in all material respects, the Controller and Auditor-General’s:
      • financial position as at 30 June 2015;
      • financial performance and cash flows for the year ended on that date;
      • output expenses, other expenses and capital expenditure against each appropriation and each class of outputs included in each output expense appropriation for the year ended 30 June 2015; and
      • unappropriated expenditure for the year ended 30 June 2015
  • the non-financial performance information of the Controller and Auditor-General on pages 14 to 34:
    • complies with generally accepted accounting practice in New Zealand; and
    • presents fairly, in all material respects, the Controller and Auditor-General’s service performance and outcomes for the year ended 30 June 2015, including for each class of outputs:
      • the service performance compared with the forecasts in the forecast statement of service performance at the start of the financial year; and
      • the revenue earned and output expenses incurred as compared with the forecasts in the forecast statement of service performance at the start of the financial year.

The audit was completed on 30 September 2015. This is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Controller and Auditor-General and our responsibilities, and explain our independence.

Basis of Opinion

We carried out the audit in accordance with International Standards on Auditing (New Zealand), and we applied the Auditor-General’s Auditing Standard 4 (Revised) – The Audit of Service Performance Reports that is also applied to the audit of non-financial performance information in many other public sector entities in New Zealand. Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and the non-financial performance information are free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and non-financial performance information. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and the non-financial performance information. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and the non-financial performance information, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Controller and Auditor-General’s preparation of the financial statements and the non-financial performance information in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Controller and Auditor-General’s internal control.

An audit also involves evaluating:

  • the appropriateness of accounting policies used and whether they have been consistently applied;
  • the reasonableness of the significant accounting estimates and judgements made by the Controller and Auditor-General;
  • the appropriateness of the reported non-financial performance information within the Controller and Auditor-General’s framework for reporting performance;
  • the adequacy of the disclosures in the financial statements and the non-financial performance information; and
  • the overall presentation of the financial statements and the non-financial performance information.

We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the Controller and Auditor-General

The Controller and Auditor-General is responsible for preparing financial statements and non-financial performance information that:

  • comply with generally accepted accounting practice in New Zealand;
  • present fairly the Controller and Auditor-General’s financial position, financial performance, cash flows, output expenses, other expenses and capital expenditure against each appropriation and unappropriated expenditure; and
  • present fairly the Controller and Auditor-General’s service performance and outcomes.

The Controller and Auditor-General is also responsible for such internal control as is determined necessary to enable the preparation of financial statements and non-financial performance information that are free from material misstatement, whether due to fraud or error.

The Controller and Auditor-General’s responsibility arises from the Public Finance Act 1989.

Responsibilities of the Auditor

We are responsible for expressing an independent opinion on the financial statements and the non-financial performance information and reporting that opinion to you based on our audit. Our responsibility arises from section 38 of the Public Audit Act 2001 and sections 45D and 45F of the Public Finance Act 1989.

Independence

When carrying out the audit, we followed the independence requirements of the External Reporting Board.

We carry out some audits of public entities on behalf of the Controller and Auditor-General. The amount of work we carry out on behalf of the Controller and Auditor-General is no more than the amount of work we did prior to our appointment as auditor of the Controller and Auditor-General, and is insufficient to threaten our independence. Other than the audit of the Controller and Auditor-General and the audits we carry out on behalf of the Controller and Auditor-General, we have no relationship with or interests in the Controller and Auditor-General.

CST Nexia Audit
Chartered Accountants
Manukau City, New Zealand