INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF KU CHILDREN’S SERVICES
We have audited the
accompanying financial report
of KU Children’s Services, which
comprises the balance sheet
as at 31 December 2007, and
the income statement, cash
flow statement and statement
of recognised income and
expense for the year ended
on that date, a summary of
significant accounting policies,
other explanatory notes and
the directors’ declaration as
set out on pages 20 to 35. In
addition, we have audited KU
Children’s Services compliance
with specific requirements of
the Charitable Fundraising Act
1991 f o r t h e y e a r e n d e d
31 December 2007.
Directors’ Responsibility for the
Financial Report and Compliance
with the Charitable Fundraising
Act 1991
The directors of the company are
responsible for the preparation
and fair presentation of the
financial report in accordance
with Australian Accounting
Standards (including the
Australian Accounting
Interpretations) and the
Corporations Act 2001 and for
compliance with the Charitable
Fundraising Act 1991.
This responsibility includes
establishing and maintaining
internal control relevant to
compliance with requirements
of the Charitable Fundraising Act
1991 and the preparation and
fair presentation of the financial
report that is free from material
misstatement, whether due to
fraud or error; selecting and
applying appropriate accounting
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KU’s 112 th Annual Report 2007
policies; and making accounting
estimates that are reasonable in
the circumstances.
Auditor’s Responsibility
Our responsibility is to express
an opinion on the company’s
compliance with specific
requirements of the Charitable
Fundraising Act 1991 and the
financial report based on our
audit. We conducted our audit
in accordance with Australian
Auditing Standards. These
Auditing Standards require
that we comply with relevant
ethical requirements relating
to audit engagements and plan
and perform the audit to obtain
reasonable assurance whether
the company has complied with
specific requirements of the
Charitable Fundraising Act 1991
and the financial report is free
from material misstatement.
An audit involves performing
procedures to obtain audit
evidence about the company’s
compliance with specific
requirements of the Charitable
Fundraising Act 1991 a n d
amounts and disclosures in
the financial report. The
procedures selected depend
on the auditor’s judgement,
including the assessment of the
risks of non-compliance with
specific requirements of the
Charitable Fundraising Act 1991
and material misstatement of
the financial report, whether
due to fraud or error. In making
those risk assessments, the
auditor considers internal
control relevant to the
entity’s compliance with the
Charitable Fundraising Act
1991 and preparation and fair
presentation of the financial
report 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 entity’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 report.
Inherent Limitations
Because of the inherent
limitations of any compliance
procedure, it is possible that
fraud, error, or non-compliance
with the Charitable Fundraising
Act 1991 may occur and not
be detected. An audit is not
designed to detect all weaknesses
in KU Children’s Services’
compliance with the Charitable
Fundraising Act 1991 as an audit
is not performed continuously
throughout the period and
the tests are performed on
a sample basis.
Any projection of the evaluation
of compliance with the Charitable
Fundraising Act 1991 to future
periods is subject to the risk
that the procedures, may
become inadequate because of
changes in conditions, or that the
degree of compliance with them
may deteriorate.
We believe that the audit
evidence we have obtained
is sufficient and appropriate
to provide a basis for our
audit opinion.