Cathay Pacific 2011 Annual Report Download - page 49

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Hong Kong Standard on Auditing 600 (“HKSA 600”),
Special Considerations – Audits of Group Financial
Statements (Including the Work of Component Auditors),
first became effective for audits of group financial
statements beginning on or after 15th December 2009.
HKSA 600 requires us to consider whether Air China is a
significant component of the Group. For the year ended
31st December 2011, Air China contributed a significant
portion of the Group’s profit before tax and is,
accordingly, considered to be a component that is
significant due to its individual financial significance to the
Group. HKSA 600 requires that an audit be performed on
the financial information of all such significant
components.
Air China published its unaudited quarterly results for the
three months to 30th September 2011 on 27th October
2011. It was not practicable for an audit to be performed
on the management accounts of Air China for the year
ended 30th September 2011 prior to the announcement
of its results for the quarter to 30th September 2011. The
audited results of Air China for the year ended 31st
December 2011 have not been published as at the date
of this report. As a result, the requirements of HKSA 600
have not been fulfilled. There were no other satisfactory
audit procedures that we could adopt and therefore we
were unable to obtain sufficient appropriate audit
evidence as to whether the carrying amount of the
Group’s investment in Air China and the Group’s share of
Air China’s results for the year as included in the Group’s
consolidated financial statements as at and for the year
ended 31st December 2011 were fairly stated.
Consequently, we were unable to determine whether any
adjustments to these amounts were necessary and to
apply the requirements of all of the applicable auditing
standards.
Qualified opinion
In our opinion, except for the possible effects of the
matter described in the basis for qualified opinion
paragraph, the consolidated financial statements give a
true and fair view of the state of affairs of the Group and
of the Company as at 31st December 2011 and of the
Group’s profit and cash flows for the year then ended in
accordance with Hong Kong Financial Reporting
Standards and have been properly prepared in accordance
with the Hong Kong Companies Ordinance.
Report on matters under sections 141(4) and 141(6)
of the Hong Kong Companies Ordinance
In respect alone of the inability to obtain sufficient
appropriate audit evidence regarding the Group’s interest
in Air China:
– we have not obtained all the information and
explanations that we considered necessary for the
purpose of our audit; and
– we were unable to determine whether proper books of
account have been kept.
KPMG
Certified Public Accountants
8th Floor, Prince’s Building
10 Chater Road
Central, Hong Kong
14th March 2012
Independent Auditor’s Report
Cathay Pacific Airways Limited Annual Report 2011 47