Financial Audit Services: On behalf of the Comptroller and Auditor
General and the Northern Ireland Audit Office
TERMS OF REFERENCE: Lot 2 - Financial Audit of the Northern Ireland Screen
Commission
1.
BACKGROUND INFORMATION
1.1
The main activities of Northern Ireland Screen Commission (NI Screen) are detailed in Annex A.
1.2
NI Screen is a company limited by guarantee, not having a share capital and having the
registered number NI 31997.. As a registered company, NI Screen is subject to the requirements
of the Companies Act 2006. Furthermore on 1 March 2013, The Companies (Public Sector Audit)
Order (Northern Ireland) 2013 came into effect requiring NI Screen’s accounts to be audited by
the C&AG. The accounts should also be laid in the Northern Ireland Assembly.
1.3
A copy of the latest annual report and accounts are available on the NI Screen website
http://www.northernirelandscreen.co.uk/
1.4
The financial year end is 31 March. There is no statutory deadline for the certification and laying
of the accounts. The deadline for laying the accounts with Companies House is 31 December.
2.
DELIVERABLES
2.1
The successful tenderer will provide financial audit services for the NIAO. The contract shall cover
the audit of the 2012-2013, 2013-2014, 2014-2015 accounts, with the option of extending
annually to cover the 2015-2016 and 2016-2017 accounts.
2.2
The audit work for which proposals are invited is confined to:

that leading to an audit opinion on the financial statements of Northern Ireland Screen
Commission (NI Screen) and part of the Remuneration Report;

a review of the Governance Statement of NI Screen; and

the audit of figures required for Whole of Government Accounts.
2.3
The NIAO will place reliance each year on the audit work carried out on accounts of the NI Screen
for its audit of the Department of Culture, Arts and Leisure (DCAL).
2.4
The audit work does not include value for money aspects, although any value for money matters
arising as a result of the audit work should be brought to the attention of the NIAO. It also does
not extend to the audit of the accounts of any bodies funded by NI Screen.
2.5
A timetable showing the dates that the NIAO will expect to have the audit work submitted is
attached at Annex B.
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2.6
The selected firm will carry out its work in accordance with International Standards on Auditing
(UK and Ireland) issued by the Financial Reporting Council (FRC), and report on the results of its
audit to the responsible staff in the NIAO. The overall objective of the audit work will be to obtain
sufficient and appropriate audit evidence to enable the selected firm to express a shadow opinion
to the NIAO in a form similar to that set out in Annex D1. Details of Reporting Requirements are
set out in Annex C.
2.7
To meet these objectives the selected firm will, inter alia, seek assurance that:
2.8
2.9
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
the form and content of the financial statements including the Remuneration Report comply
with the applicable government and professional accounting requirements and principles;

the figures in the financial statements are properly stated;

the funds have been applied to the services and for the purposes intended by the Northern
Ireland Assembly;

the transactions are in accordance with Northern Ireland Assembly authority, statute and
other regulations;

the Governance Statement for NI Screen meets the requirements for disclosure specified by
the Department of Finance and Personnel and is consistent with other information resulting
from the audit of the financial statements; and

information which comprises the management commentary and certain other information
normally included in a Director’s report, included within the Annual Report is consistent with
the accounts.
In arriving at their opinion the selected firm will consider the following major points and report
specifically on any aspects with which they are not satisfied:

whether NI Screen has kept proper accounting records;

whether they have obtained all the information and explanations which they consider
necessary for the purposes of their audit; and

whether information specified by relevant authorities regarding senior management’s
remuneration and transactions is not disclosed.
The selected firm will also be required to read the information contained in the Annual Report and
state whether it is consistent with the financial statements. If they become aware of any apparent
misstatements or material inconsistencies with the financial statements implications for the audit
opinion must be considered. The Engagement Partner will be required to advise that he/she has
completed a review of the Annual Report.
The NIAO will notify the firm of any changes to audit certificates as necessary.
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2.10 We expect that the firm’s audit team for the assignment will be led by a Partner with day to day
responsibility delegated to a Director or Audit Manager. Dependent on an assessment of risk, an
engagement quality control review under ISA 220 may be required for this audit and it will be the
firm’s responsibility to carry this out.
2.11 There is no statutory deadline for the certification and laying of the accounts. The deadline for
laying the accounts with Companies House is 31 December. Prior to commencing the examination
of each year’s accounts the firm will obtain the approval of the NIAO Assignment Director for the
proposed audit strategy. If the audit is considered to be of a higher risk, the partner is expected to
meet with the NIAO Director to brief him / her on initial planning assessments and agree the
general audit approach prior to formal submission of the audit strategy. This is shown in the
liaison timetable at Annex B. The draft audit strategy should be prepared in a format agreed in
advance with the NIAO. The audit will not commence until the audit strategy has been approved
by the NIAO Assignment Director. Following approval of the strategy, the firm will be required to
inform the Board of the audit approach and underpinning assumptions and present the strategy to
the Audit Committee.
2.12 During the audit the partner is expected to keep the NIAO Director informed of any significant
matters. The expected liaison is shown in the timetable at Annex B. Firms may propose an
alternative (higher or lower) level of liaison if they consider it beneficial or otherwise warranted.
2.13 At the conclusion of the audit and following the firm’s Partner review, the firm’s shadow opinion
as to the acceptability of the financial statements for certification by the C&AG will be forwarded
to the responsible NIAO Assignment Director, together with a draft Report to Those Charged with
Governance and any draft presentation to the Audit Committee and senior management of NI
Screen.
2.14 The draft Report to those Charged with Governance should be prepared in a format agreed in
advance with the NIAO. The draft must be reviewed by the NIAO before being forwarded by the
firm to NI Screen. The firm will be responsible for agreeing the draft Report to those Charged with
Governance with NI Screen’s senior management. The final Report to those Charged with
Governance should be forwarded to the NIAO who will formally issue it to NI Screen and DCAL.
2.15 On receipt of the firm’s opinion and draft Report to Those Charged with Governance an overall
scrutiny will be carried out by the NIAO Assignment Director. If the audit is judged to be high risk,
the partner will meet with the NIAO Director to brief him / her on the findings and to agree the
presentation to the Audit Committee and senior management of NI Screen. This scrutiny will
involve examination of these documents and may also involve examination of the firm’s detailed
working papers. The results of this scrutiny will form the basis of the NIAO’s submission of the
account for certification by the C&AG.
2.16 The selected firm will be required to attend meetings with the Audit Committee, some meetings
of which will also be attended by NIAO. It is expected, unless otherwise agreed, that in any
presentation, the firm will take the lead in discussing the work and findings to the audited body
and the Audit Committee.
2.17 Some audited bodies or Audit Committees may require more frequent briefings from their
auditors. The firm will adopt the same responsibilities as given above in such situations. The
requirement for this is outlined in the timetable at Annex B.
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2.18 The selected firm may also be called upon to provide additional information in respect of the
C&AG’s Annual Report on the results of financial audit work, and other ad hoc enquiries. In total,
this demand for additional information is not expected to be onerous.
2.19 The work undertaken by the firm will be subject to the firm’s normal quality assurance
procedures. Insofar as any comments made as a result of these procedures impinge upon the
work undertaken for the NIAO, they must be drawn to the attention of the NIAO. The work
undertaken will also be subject to the NIAO’s quality control procedures, which include the review
of the conduct of a sample of completed audits.
2.20 Where required, the NIAO will be permitted to have access to working files or papers produced
during the course of the contract.
2.21 The assignment will also require the selected firm to comply with APB Bulletin 2001/1 when
financial statements accompanied by the auditor’s report are published on the entity’s website.
2.22 The acceptance criteria for this assignment will reflect the delivery of the deliverables in
accordance with FRC International Standards on Auditing (UK and Ireland) and the specified
timetable, and the audit approach set out in the successful firm’s proposal.
3.
INFORMATION REQUIREMENTS
Total Cost of the Audit Assignment
3.1
The tender should include a fixed price for the audit of the accounts of Northern Ireland Screen
Commission (NI Screen) for each of the three years of the contract, (2012-2013 to 2014-2015)
exclusive of Value Added Tax and also for the two optional years (2015-2016 and 2016-2017),
exclusive of Value Added Tax.
3.2
Please provide a matrix of costs by staff mix and daily/hourly fee rates, together with planned
days/hours for each stage of the audit, i.e. planning, transactional testing and completion stages.
Prices should be inclusive of expenses but exclusive of VAT. These prices will be variable only if the
NIAO agrees that there has been a significant change in work or if the NIAO specifically request
additional work. Any changes must be agreed in advance with the NIAO Assignment Director in
writing. The tenderer must, therefore, fully assess all risks involved when making their bid.
3.3
The lowest cost bid will be allocated the maximum marks and other bids will be awarded scores
on a pro-rata basis.
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Quality of Services
3.4
In evaluating the quality of services offered, the NIAO will evaluate each aspect of quality as
follows:
Sub-Criteria
Weighting
Professional competency and ability to deliver
Tenderers must confirm their status as appropriately qualified auditors.
Tenderers must confirm that they are able to comply with NIAO’s five year
policy for rotation of engagement partners and managers. The policy
includes work on previous organisations which have subsequently
merged.
Pass/Fail
Pass/Fail
Tenderers must confirm that they are capable of fulfilling the Audit
Assignment regardless of location. This Audit Assignment may require
attendance at a number of locations within the organisation.
Pass/Fail
Tenderers must confirm that they are able to comply with the timetable.
Pass/Fail
Proposed audit approach to the Audit Assignment
20 marks
The tender should include:

A description of the proposed approach to the assignment and
demonstrate how the intended level of assurance is to be
achieved;

Details of the proposed basis for materiality;

Details of the proposed reliance on internal controls and
substantive testing procedures, for individual audit areas;

Specific details as to how regularity will be addressed;

Information to demonstrate that the tenderer has an
understanding of public sector accounting and regulatory and
corporate governance frameworks, along with a sound general
knowledge of issues relevant to the sector; and

A description of the tenderer’s quality assurance
arrangements, outlining their arrangements for complying
with ISQC 1 and ISA 220.
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Skills and application of relevant experience to the Audit Assignment
15 marks
The tender should include:

Details of previous experience of providing similar services
which the tenderer may consider relevant to this assignment;

Names of the partner and key members of the team proposed
for the assignment and an indication of their relevant
knowledge and experience, and how that knowledge and
experience will be applied to the Audit Assignment. For more
junior staff the number of years of trainee or post-qualification
experience should be disclosed;

Information to demonstrate that the proposed members of
the audit team staff are trained and suitably qualified to
undertake the audit work;

Full details of the tenderer’s training policies and practices
and the extent to which these address the requirement to
have an understanding of accounting, auditing and corporate
governance framework in the public sector.
Resources proposed for the Audit Assignment
15 marks
The tender should provide details of:
3.5
4.
4.1

the number of days/hours per grade of staff proposed for each
of the main stages of the audit i.e. planning, transactional
testing and completion stages; and

the specific role of each of the key members of the proposed
audit team.
The best qualitative scoring bid for each sub-criteria above will be allocated the maximum marks
for that sub-criteria and other bids will be awarded scores on a pro-rata basis.
CONFLICTS OF INTEREST
Tenderers should supply information in relation to all existing and proposed contractual links. In
order for the NIAO to consider the impact on the firm’s independence of any other work
undertaken for NI Screen or the Department of Culture, Arts and Leisure and related bodies as
detailed in Annex A, tenderers must therefore provide a summary of:
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
details of all existing contractual links between the firm and the audited body which may
cause or be perceived to cause a conflict of interest situation to arise – this should include any
work carried out during the last two years and any major work on information systems which
are still in use within NI Screen or its parent department and related bodies; and
• details of all existing contractual links between the firm and any third party, whose interest
may conflict or be perceived to conflict with those of the audited body.
5.
5.1
6.
6.1
CONTACT ARRANGEMENTS
Further information on the assignment can be obtained from Peter O’Sullivan (Tel: 028 902
51111, or, e-mail: peter.o’sullivan@niauditoffice.gov.uk). You should not contact Northern
Ireland Screen Commission without prior clearance from the person named above.
PAYMENT PROFILE
The following payment profile will operate, unless otherwise agreed with NIAO:

30 per cent on approval of the audit strategy by NIAO;

50 per cent on production of draft Report to those Charged with Governance and
presentation of findings to the Audit Committee / senior management; and

20 per cent on C&AG’s signing of the audit certificate and the formal issue of the final
Report to those Charged with Governance.
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Annex A
Profile of the Northern Ireland Screen Commission
Aims, objectives and responsibilities
1.
Northern Ireland Screen Commission (trading as NI Screen) was established on 28 April 1997 as a
direct result of recommendations made in the Edmund Review, which was commissioned by the
Department of Education for Northern Ireland and the Department of Economic Development. It
assumed the previous responsibilities of the Northern Ireland Film Council. The company is
limited by guarantee.
2.
NI Screen’s mission is to accelerate the development of a dynamic and sustainable screen industry
and culture in Northern Ireland by integrating industrial, educational and cultural policies and
actions.
3.
The functions, duties and powers of NI Screen are set out in its Memorandum and Articles of
Association.
4.
NI Screen’s main areas of activity are:
 Film development and production funding;
 Production logistic support;
 Marketing to promote Northern Ireland as a base for production;
 Company development support initiatives for local production companies;
 Skills development/training for the industry;
 Information services for producers and others;
 Moving image education policy development;
 Developing access to the audio-visual heritage of Northern Ireland; and
 Specialist film exhibition development.
Organisational structure
5.
The Permanent Secretary of the Department of Culture, Arts and Leisure (DCAL), as Departmental
Accounting Officer, is accountable to the Assembly for funding issued by DCAL to NI Screen. The
Permanent Secretary of the Department of Enterprise, Trade and Investment (DETI), as
Departmental Accounting Officer, is accountable to the Assembly for funding issued by Invest NI
to NI Screen.
6.
The Chief Executive of NI Screen is designated as the Accounting Officer by the Departmental
Accounting Officer of DCAL. The Accounting Officer of NI Screen is personally responsible for
safeguarding the public funds for which he/she has charge; for ensuring propriety and regularity in
the handling of those public funds; and for the day-to-day operations and management of NI
Screen.
7.
Board Members are appointed by the Minister for Culture, Arts and Leisure in consultation with
the Minister for Enterprise, Trade and Investment. The Board has corporate responsibility for
ensuring that NI Screen fulfils the aims and objectives set by DCAL and Invest NI and for promoting
the efficient, economic and effective use of staff and other resources by NI Screen.
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8.
NI Screen has an independent audit committee as a committee of its Board. The audit committee
oversees the internal audit arrangements within NI Screen and ensure that they are conducted in
accordance with The Treasury’s Government Internal Audit Standards, DAO (DFP) 01/10, entitled
Internal Audit Arrangements – Relationships between Departments and Arms Length Bodies and
DAO (DFP) 07/07 HM Treasury “Audit Committee Handbook”.
Legislation governing activities.
9.
NI Screen is a company limited by guarantee. As a registered company, NI Screen is subject to the
requirements of the Companies Act 2006. Furthermore on 1 March 2013, The Companies (Public
Sector Audit) Order (Northern Ireland) 2013 came into effect requiring NI Screen’s accounts to be
audited by the C&AG. The accounts should also be laid in the Northern Ireland Assembly.
Funding
10.
NI Screen’s principle source of income is grants provided by DCAL and Invest NI.
11.
In addition to the funding from DCAL and Invest NI, NI Screen has delegated authority from the
Arts Council of Northern Ireland for the distribution of National Lottery proceeds for film and
moving image in Northern Ireland. It also received funding from other sources currently including
the UK Film Council.
Accounting and computing systems
12.
NI Screen operates the Exchequer Accounts Package, Version 6.2 (using Pervasive Database).
Relevant DFP Guidance
13.
NI Screen must prepare accounts in a form directed by DCAL and approved by the Department of
Finance and Personnel (DFP).
14.
The annual accounts are prepared in accordance with the Government Financial Reporting Manual
(FReM) www.hm-treasury.gov.uk/frem_index.htm and any other guidance which DFP may issue
from time to time in respect of accounts that give a true and fair view.
15.
In addition to this guidance, NI Screen must also comply with guidance on other issues such as
regularity and procurement contained in Managing Public Money Northern Ireland and other
miscellaneous DFP guidance.
16.
Copies of the guidance are available on DFP’s Accountability and Financial Management Division
website at www.dfpni.gov.uk/afmd.
Previous years audit findings
17.
An unqualified audit opinion was expressed by the external auditor on the 2011-12 Annual Report
and Accounts. No report was required.
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18.
The Statement of Internal Control made reference to one Significant Internal Control Issue:

The Internal Audit review of Facilities Management in September 2010 resulted in one
Priority 1 recommendation relating to the Paint Hall lease and which resulted in
‘Limited’ assurance being given.
Location
19.
NI Screen is located at Alfred House, 21 Alfred Street, Belfast, BT2 8ED.
Internal audit
20.
The Internal Audit function is outsourced to a private firm of accountants.
WGA processes
21.
NI Screen has been designated as a small body for inclusion in Whole of Government Accounts
(WGA) by DFP under Section 15(1) of the Government Resource and Accounts Act (NI) 2001. As
such, NI Screen is required to prepare information (referred to as consolidation schedules) in the
form and to the timetable directed by DFP. Small bodies are those bodies for which reduced WGA
reporting requirements apply; there should also be a reduced audit burden for bodies in this
sector.
22.
The tenderer will be responsible for auditing the consolidation schedules on behalf of the NIAO, in
accordance with International Standards on Auditing (UK & Ireland) as supplemented by guidance
issued annually by the NIAO’s WGA audit team, and forming an opinion on whether the
consolidation schedules are consistent with the results and position of NI Screen and have been
properly prepared in accordance with DFP’s guidance and instructions.
Related entities
23.
Details of all related parties, including the Department of Culture Arts and Leisure (DCAL) are
included in the NI Screen 2011-2012 certified accounts at note 17; these accounts are available on
the NI Screen website http://www.northernirelandscreen.co.uk/ .
24.
All subsidiary bodies falling within the remit of DCAL may have the potential to be related parties.
These will need to be considered on a case by case basis.
25.
NI Screen board members, key management staff (and families and connected businesses) etc.
will have to be considered as potential related parties.
Alignment Project
26. It is proposed under the ‘Alignment (Clear Line of Sight) Project’ to streamline financial reporting
with combined Departmental Resource accounts, consolidating NDPB’s, to be published in June
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each year, commencing in 2014-15. It is expected that any changes to the timetable of the audits
which may result from the Alignment Project will be accommodated by the tenderer.
Annex B
TIMETABLE FOR AUDIT WORK
1. For the audit of the 2012-13 audit only a timetable will be agreed between the winning tenderer
and NIAO, that will facilitate the company in meeting its obligations under the Companies Act and
with regards to laying the accounts in the Northern Ireland Assembly.
2. For the remainder of the contract and depending on the audit approach adopted and the timetable
for preparation of the draft Account by Northern Ireland Screen Commission (NI Screen), the audit
timetable is likely to be along the following lines:
Date
Action
February
Submission of audit strategy and detailed audit approach for
audit to the NIAO.
March
NIAO approval of audit strategy and detailed audit approach.
August
Preparation of draft account by NI Screen to NIAO.
September
Draft Report to those Charged with Governance to NIAO at least
one week in advance of the Audit Committee.
September
Presentation of draft Report to those Charged with Governance
to the Audit Committee
September
Certification of accounts by C&AG.
These dates may be flexible and it is possible that some may change but the successful contractor
will be advised of any change as soon as it is known. The firm should then confirm that it considers
that it will be able to meet any new timetable and that this will be at no extra cost (on the basis that
the work is unchanged but it is carried out earlier). As part of its overall scrutiny of the audit, and if
any major issues arise, NIAO may wish to review interim work.
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3. Within this overall timetable the following meetings are expected to be required.
Date
January
Present
NIAO
Firm
February
NIAO
Nature of meeting and responsibilities
Pre-planning meeting prior to
commencement of strategy to discuss
potential risks.
Meeting to discuss strategy. Firm to brief
NIAO on main risks identified.
Firm
March
NIAO
Presentation of strategy to the Audit
Committee.
Audit Committee
Firm
September
NIAO
Meeting to discuss audit findings following
NIAO review of the firm’s working papers.
Firm
September
NIAO
Audit Committee
Firm
Presentation of audit findings to the Audit
Committee. The firm will lead on this and
will be expected to present any
Report/Qualification needed on the
accounts
4. Please refer to Annex C for suggested wording of reports to NIAO.
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Annex C
REPORTING ARRANGEMENTS
1. The NIAO has adopted the Financial Reporting Council’s International Standard on Auditing (UK and
Ireland), ISA 700: The auditor’s report on financial statements and the guidance contained in
Practice Note 10 (Revised): Audit of Financial Statements of Public Sector Bodies in the United
Kingdom (Revised) on the application of Auditing Standards to the audit of financial statements of
public sector entities in the United Kingdom.
2. The selected firm will be required to give a shadow audit certificate to NIAO at the conclusion of
each audit, in a form similar to the one issued by the C&AG (see Annex D). The audit certificate
should be signed by a partner on behalf of the firm.
3. NIAO will notify the firm of any amendments to the audit certificate as and when required.
4. Tenderers should note the need to provide a separate opinion on the regularity of the transactions
underlying the financial statements. Alternative wording will not be acceptable except in the case of
a qualified opinion or a Report on the account (see below) when advice should be sought from
NIAO.
5. Regularity is defined as the requirement that financial transactions should be in accordance with the
legislation authorising them, regulations issued by a body with the powers to do so under governing
legislation, Northern Ireland Assembly authority and Department of Finance and Personnel
authority.
Qualifications and Reports on the Accounts
6. It will be the absolute responsibility of the firm to identify matters that may give rise to qualification
or other Report on the account.
7. For this audit the C&AG is statutorily required to report on the annual accounts. Where there are no
matters of substance to report, this is achieved by the use of the phrase, "I have no observations to
make on these financial statements" under the heading Report. Where there are matters of
substance to report the procedures below should be observed.
8. In accordance with ISA 705: Modifications to the opinion in the independent auditor’s report and
Practice Note 10 (Revised), the C&AG will qualify his audit opinion where:
a.
there is a scope limitation on the auditors’ examination;
b.
the auditors disagree with the treatment or disclosure of a matter in the financial
statements;
c.
the effect of a disagreement is so material or pervasive that the financial statements are
seriously misleading (adverse opinion);
d.
the effect of a scope limitation is so material or pervasive that the auditor is unable to
form an opinion (disclaimer); or
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e.
there are material financial transactions which are not in compliance with the
appropriate authorities.
9.
Whenever the C&AG qualifies his audit opinion he provides a Report, which briefly sets out the
circumstances and explains the reasons for his qualification. He may also prepare a Report on
matters which, whilst not in themselves material to the account, need to be drawn to the
attention of the Northern Ireland Assembly. This latter category may include irregular or
unusual transactions or misstatements to be published or considered in conjunction with the
audited financial statements.
10.
Having formed an opinion on the necessity for qualification or Report, the firm should
immediately contact the NIAO to discuss its conclusions. No additional work should be
undertaken without the approval of the NIAO. The NIAO reserves the right to investigate any
possible qualification or Report in any manner it considers appropriate. This may be achieved
within the remit of the existing contract or by way of an additional contract with the firm, a
contract with another body, or by direct investigation by the NIAO.
11.
When the NIAO reviews the audit, the firm should make available a list of those subjects
considered for qualification or Report but not earlier drawn to the NIAO’s attention. Significant
issues, such as these, should be communicated to the NIAO at the earliest opportunity during
the audit.
Annual Report and Accounts
12.
The firm is required to ensure that the financial information contained in the annual report is
consistent with the annual accounts.
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Annex D
SHADOW AUDIT OPINION
Please find below the most recent model audit certificate for a Limited Company account (for accounts
prepared under IFRS). This will be reviewed annually by the NIAO and you will be provided with our
most up to date version for each year of account.
Limited Company model Audit Certificate 2012-13
(for accounts prepared under IFRS)
[NAME OF COMPANY]
THE CERTIFICATE AND REPORT2 OF THE COMPTROLLER AND AUDITOR
GENERAL TO THE MEMBERS OF [INSERT NAME OF COMPANY]
I certify that I have audited the financial statements of the [name of company] for the year ended
[insert date] under the Companies (Public Sector Audit) Order (Northern Ireland) [2008/2013] 3.
These comprise the [Statement of Comprehensive Income, the Statement of Financial Position,
the Statement of Cash Flows, the Statement of Changes in Equity] 4 and the related notes. These
financial statements have been prepared under the accounting policies set out within them. The
financial reporting framework that has been applied in their preparation is applicable law and
International Financial Reporting Standards as adopted by the European Union5. I have also
audited the information in the Remuneration Report that is described in that report as having
been audited.6
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities Statement, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a
2
Where there is a separate report, the words “AND REPORT” should be deleted from the title
3
Delete as appropriate. 2008 Order will still apply to any backlog audits with financial years ending 28 February
2013 or earlier.
4
This should match the exact names of the primary statements used in the financial statements.
5
Under Companies Act 2006, where a company applies IFRS they must apply it as endorsed by the European
Union.
6
Companies are not required to produce a remuneration report under Companies Legislation, however, as all these
companies that NIAO presently audit are NDPBs there is a requirement to produce one within their accounts for
compliance with FReM.
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true and fair view. My responsibility is to [audit / examine, certify and report on]7 the financial
statements in accordance with the Companies (Public Sector Audit) Order (Northern Ireland)
[2008/2013]2. I conducted my audit in accordance with International Standards on Auditing (UK
and Ireland). Those standards require me and my staff to comply with the Financial Reporting
Council’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial
statements sufficient to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This includes an assessment of: whether
the accounting policies are appropriate to the company’s circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant accounting
estimates made by the directors; and the overall presentation of the financial statements. In
addition I read all the financial and non-financial information in the Annual Report8 to identify
material inconsistencies with the audited financial statements. If I become aware of any apparent
material misstatements or inconsistencies I consider the implications for my certificate.
In addition, I am required to obtain evidence sufficient to give reasonable assurance that the
expenditure and income recorded in the financial statements have been applied to the purposes
intended by the Assembly and the financial transactions recorded in the financial statements
conform to the authorities which govern them.
Opinion on Regularity
In my opinion, in all material respects the expenditure and income recorded in the financial
statements have been applied to the purposes intended by the Assembly and the financial
transactions recorded in the financial statements conform to the authorities which govern them.
Opinion on financial statements
In my opinion the financial statements:

7
give a true and fair view of the state of the company’s affairs as at [insert date] and of
its [surplus/deficit/profit/loss]9, cash flows and changes in taxpayers’ equity for the
year then ended;
Delete as appropriate. For 2008 Order use “audit”; for 2013 Order use “examine, certify and report”.
8
This must be a description of all the information which accompanies the financial statements, not limited to the
elements on which we give a positive consistency opinion (e.g. includingthe Governance Statement ). If the
document containing the financial statements is not called “Annual Report and Accounts” then the individual titles
of each section may need to be spelled out.
9
Delete as appropriate- This should be the naming convention in the performance statement and should be the result
for the year.
16

have been properly prepared in accordance with International Financial Reporting
Standards as adopted by the European Union; and

have been prepared in accordance with the Companies Act 2006.
Opinion on other matters
In my opinion:

the part of the Remuneration Report4 to be audited has been properly prepared in
accordance with the Government Financial Reporting Manual10; and

the information given in the Directors’ Report for the financial year for which the
financial statements are prepared is consistent with the financial statements.
Matters on which I report by exception
I have nothing to report in respect of the following matters which I report to you if, in my
opinion:

adequate accounting records have not been kept; or

the financial statements and the part of the Remuneration Report5 to be audited are
not in agreement with the accounting records; or

I have not received all of the information and explanations I require for my audit; or

the Governance Statement does not reflect compliance with Department of Finance
and Personnel’s guidance. 11
Report12
I have no observations to make on these financial statements.
KJ Donnelly
Comptroller and Auditor General
Northern Ireland Audit Office
10
For all current companies audited by NIAO which are also NDPBs the authority will be FReM. These accounts
cannot be subject to an accounts direction, so this cannot be quoted as an authority.
11
The companies that we audit are NDPBs and as such are required to comply with DFP guidance in respect of the
Statement of Internal Control.
12
Delete heading and section where there is a separate C&AG’s report.
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Belfast
BT7 1EU
Date
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