After six months of concerted advocacy efforts by CA ANZ, we appreciate that the Department of Internal Affairs (DIA) has now updated its Class 3 Audit and Prize Statement (GC13 form). A member bought to our attention that the form prescribed auditor reporting requirements that did not align with, or conform to, the requirements of the auditing standards issued by the External Reporting Board (XRB).

The scope of the engagement is to audit Part G of the form – a statement of financial performance of the Class 3 gambling activity. Part H on page 12 of the form required auditors to sign off on the following statement:

“As auditor for the Society I have examined the records of the Class 3 gambling activity and in my opinion this Audit and Prize Statement gives a true and accurate record of the conduct of the Class 3 gambling activity.”

We were concerned about this for the following reasons:

• The term “true and accurate” is not used in the auditing standards, rather the phrases “presents fairly, in all material respects,” or “gives a true and fair view” are used.
• The word “accurate” implies absolute assurance which is not attainable under the auditing standards.
• The auditor is not providing an opinion on the “conduct of the Class 3 gambling activity” – only the proceeds and costs of the Class 3 gambling activity as outlined in the financial statement in Part G of the form, so this is misleading.
• If members were to sign the form, they would be in breach of their professional and ethical obligations to comply with the auditing standards.

In the revised form, auditors are no longer required to sign-off on any such statement. Instead, a copy of the Auditor’s Report (prepared in accordance with the auditing standards) now must be attached to the form.

If you come across a prescribed auditor’s report, then we want to hear about it. But instead of being the ambulance at the bottom of the cliff, we would prefer to work with policy makers upfront when setting auditing requirements. It is important that the requirements are drafted in a way that allows users to receive consistent, useful information and those carrying out the assurance services can provide high quality, efficient engagements while complying with their professional and ethical obligations.