To the Treasurer
I have audited the accompanying financial statements of the Australian Reinsurance Pool Corporation for the year ended 30 June 2007, which comprise: a statement by Members and Chief Executive; income statement; balance sheet; statement of changes in equity; cash flow statement; schedules of commitments and contingencies; a summary of significant accounting policies; and other explanatory notes.
The Responsibility of Members for the Financial Statements
The members of the Australian Reinsurance Pool Corporation are responsible for the preparation and fair presentation of the financial statements in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997 and the Australian Accounting Standards (including the Australian Accounting Interpretations). This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
My responsibility is to express an opinion on the financial statements based on my audit. My audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements 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 Authority’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Members of the Australian Reinsurance Pool Corporation, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for my audit opinion.
In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the ethical requirements of the Australian accounting profession.
In my opinion, the financial statements of the Australian Reinsurance Pool Corporation:
(a) have been prepared in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, and the Australian Accounting Standards (including the Australian Accounting Interpretations); and
(b) give a true and fair view of the matters required by the Finance Minister’s Orders including the Australian Reinsurance Pool Corporation’s financial position as at 30 June 2007 and of its financial performance and its cash flows for the year then ended.
Australian National Audit Office
Group Executive Director
Delegate of the Auditor-General