Reserve Bank of Australia Annual Report – 2011 Financial Statements Independent Auditor's Report
INDEPENDENT AUDITOR'S REPORT
To the Treasurer
Report on the Financial Statements
I have audited the accompanying financial statements of Reserve Bank of Australia and the controlled entities for the year ended 30 June 2011, which comprise: a Directors' Statement; Balance Sheet; Statement of Comprehensive Income; Statement of Distribution; Statements of Changes in Capital and Reserves; Cash Flow Statement; and Notes to and forming part of the Financial Statements, including a summary of accounting policies.
Directors' Responsibility for the Financial Statements
The directors of the Reserve Bank of Australia are responsible for the preparation of the financial statements that give a true and fair view in accordance with the Finance Minister's Orders made under the Commonwealth Authorities and Companies Act 1997, including the Australian Accounting Standards, and for such internal control as the directors determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In Note 1, the directors also state that the financial statements comply with International Financial Reporting Standards.
Auditor's Responsibility
My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit 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 about 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 entity's preparation of the financial statements that give a true and fair view 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 the Reserve Bank of Australia's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, 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 my audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the requirements of the Australian accounting profession.
Opinion
In my opinion, the financial statements of the Reserve Bank of Australia and the controlled entities:
- have been prepared in accordance with the Finance Minister's Orders made under the Commonwealth Authorities and Companies Act 1997, including the Australian Accounting Standards;
- give a true and fair view of the matters required by the Finance Minister's Orders including the Reserve Bank of Australia's and the controlled entities financial position as at 30 June 2011 and of their financial performance and cash flows for the year then ended; and
- comply with International Financial Reporting Standards as disclosed in Note 1.
Australian National Audit Office
Ian McPhee
Auditor-General
Canberra
25 August 2011
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