Overstrand Municipality yet again received a clean audit report for the 2014/15 financial year. A “clean audit outcome” is an unqualified audit which implies that the financial statements are free from material misstatements, that there were no material findings relating to the annual performance report and that all key legislation had been complied with.
We have received unqualified audits since 2006/07 and clean audits in 2012/13, 2013/14 and now in 2014/15.
"The attainment of a clean audit is in line with our ultimate goal, namely to maintain a clean administration characterised by good governance, financial compliance and strong internal controls,” said Executive Mayor Nicolette Botha-Guthrie, adding that “to fulfil this goal, we have to continuously improve our business processes in the interest of growth and sustainability.
Quick Guide to Audit Reports and Findings
1. CLEAN AUDIT OUTCOME:
The financial statements are free from material misstatements (in other words, a financially unqualified audit opinion) and there are no material findings with regards to reporting on performance objectives or non-compliance with legislation.
2. FINANCIALLY UNQUALIFIED AUDIT OPINION:
The financial statements contain no material misstatements. Unless the auditor has expressed a clean audit outcome, findings have been raised regarding either reporting on predetermined objectives or compliance with legislation, or both of these aspects.
3. QUALIFIED AUDIT OPINION:
The financial statements contain material misstatements in terms of specific amounts, or there is insufficient evidence for the auditor to conclude that specific amounts included in the financial statements are not materially misstated.
4. ADVERSE AUDIT OPINION:
The financial statements contain material misstatements that are not confined to specific amounts, or the misstatements represent a substantial portion of the financial statements.
5. DISCLAIMER OF AUDIT OPINION:
The auditee provided insufficient evidence in the form of documentation on which to base an audit opinion. The lack of sufficient evidence is not confined to specific amounts, or represents a substantial portion of the information contained in the financial statements.