Qantas 2006 Annual Report Download - page 143

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141
Qantas Annual Report 2006
Independent Audit Report
to the members of Qantas Airways Limited
SCOPE
THE FINANCIAL REPORT, REMUNERATION DISCLOSURES AND DIRECTORS’ RESPONSIBILITY
The Financial Report comprises the Income Statements, Balance Sheets, Statements of Changes in Equity, Cash Flow Statements, accompanying notes 1 to 37
to the Financial Statements and the Directors’ Declaration for both Qantas Airways Limited (Qantas) and Qantas Airways Limited and its controlled entities
(Qantas Group), for the financial year ended 30 June 2006. The Qantas Group comprises both Qantas and the entities it controlled during that financial year.
As permitted by the Corporations Regulations 2001, Qantas has disclosed information about the remuneration of Directors and Executives (remuneration
disclosures), required by Australian Accounting Standard AASB 124 Related Party Disclosures, under the heading “Remuneration Report” on pages 54 to 66
of the Directors’ Report and not in the Financial Report.
The Remuneration Report also contains information included on pages 54 to 56 not required by Australian Accounting Standard AASB 124 which is not subject
to our audit.
The Directors of Qantas are responsible for the preparation and true and fair presentation of the Financial Report in accordance with the Corporations Act
2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud
and error, and for the accounting policies and accounting estimates inherent in the Financial Report. The Directors are responsible for preparing the relevant
reconciling information regarding the adjustments required under the Australian Accounting Standard AASB 1 First-time Adoption of Australian equivalents
to International Financial Reporting Standards. The Directors are also responsible for the remuneration disclosures contained in the Directors’ Report.
AUDIT APPROACH
We conducted an independent audit in order to express an opinion to the members of Qantas. Our audit was conducted in accordance with Australian Auditing
Standards in order to provide reasonable assurance as to whether the Financial Report is free of material misstatement and that the remuneration disclosures
comply with AASB 124. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of
internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have
been detected. We performed procedures to assess whether in all material respects the Financial Report presents fairly, in accordance with the Corporations
Act 2001, Australian Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our
understanding of Qantas’ and Qantas Group’s financial position, of their performance as represented by the results of their operations and cash flows and
whether the remuneration disclosures comply with Australian Accounting Standard AASB 124.
We formed our audit opinion on the basis of these procedures, which included:
• examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the Financial Report, and
• assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of signifi cant accounting estimates made by the Directors.
While we consider the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures,
our audit was not designed to provide assurance on internal controls.
AUDIT OPINION
1. In our opinion, the Financial Report of Qantas Airways Limited is in accordance with:
(a) the Corporations Act 2001, including:
i. giving a true and fair view of Qantas’ and Qantas Group’s fi nancial position as at 30 June 2006 and of their performance for the fi nancial year ended on that
date; and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b) other mandatory fi nancial reporting requirements in Australia.
2. The remuneration disclosures that are contained on pages 57 to 66 of the Remuneration Report in the Directors’ Report comply with Australian Accounting Standard
AASB 124 Related Party Disclosures.
KPMG Mark Epper
Partner
Sydney, 28 August 2006