An auditor’s responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing. The opinion will be based on tests carried out on the information disclosed in the financial statements. In addition to this, auditors are required to read the director’s report to identify material inconsistencies with the financial statements. In instances where inconsistencies are identified in the director’s report, the auditor must consider the implications for their audit report. If accounts prepared by the directors contain material inconsistencies, then it is likely that the auditor may qualify their opinion and make reference to this in the audit report. An example of such inconsistencies which may result in a qualification in the audit report would include; 1. Director’s report making reference to an incorrect profit/loss figure for the year. 2. Director’s report being overly positive where the financial statements show significant going concern issues. 3. Director’s report failing to disclose political contributions made during the year. 4. No post balance sheet events being disclosed despite some occurring. Before financial statements are finalised, care should be taken to ensure that the Director’s Report is materially consistent with the financial statements.

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