Reserve Bank of Australia Annual Report – 2008 Financial Statements Independent Auditor's Report
INDEPENDENT AUDITOR's REPORT
To the Treasurer
Scope
I have audited the accompanying financial statements of the Reserve Bank of Australia and controlled entities for the year ended 30 June 2008, which comprise: a directors’ statement; balance sheet; income statement; statement of distribution; statement of changes in capital and reserves; cash flow statement; and notes to and forming part of the financial statements including the summary of accounting policies.
The Responsibility of the Board of Directors for the Financial Statements
The members of Board 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 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.
Auditors's Responsibility
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 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 preparation and fair presentation of the financial statements by the Reserve Bank of Australia 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 internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence
In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the requirements of the Australian accounting profession.
Auditor's Opinion
In my opinion, the financial statements of the Reserve Bank of Australia and controlled entities:
- have been prepared in accordance with Finance Minister's Orders made under the Commonwealth Authorities and Companies Act 1997, and the Australian Accounting Standards (including the Australian Accounting Interpretations) and;
- give a true and fair view of the matters required by the Finance Minister's Orders including the Reserve Bank of Australia and controlled entities’ financial position as at 30 June 2008 and their financial performance and their cash flows for the year then ended.
Ian McPhee
Auditor-General
Sydney
14 August 2008
GPO Box 707 CANBERRA ACT 2601
19 National Circuit BARTON ACT
Phone (02) 6203 7500
Fax (02) 6273 5355
Email ian.mcphee@anao.gov.au