new audit report

hi sir
please help to criticise the audit report in accrodance with new standard

whether we use KAM and EOM paragraph and how

Q.The audit work for the year ended 31 March 2014 is nearly complete, and you are
reviewing the draft audit report which has been prepared by the audit senior. The
Directors have refused to amend the financial statements in respect of the
misreporting of greenhouse gas emissions.

Basis of opinion (extract)

Management have not accounted for a provision in respect of a fine relating to the
misreporting of greenhouse gas emissions, which constitutes a departure from
International Financial Reporting Standards. The company reported 125,000 tons of
CO2 emissions for the year ended 31 December 2013, when an estimated 150,000
tons were incurred. Profits are overstated as a result of the non-recognition of the
provision, but the overstatement is not material and therefore our opinion is not
modified.

Unmodified opinion as the misstatement is immaterial

In our opinion the financial statements present fairly in all material respects, the
financial position, of Énergie Renouvelables Inc as at 31 March 2014, and its financial
performance and its cash flows for the year then ended, in accordance with
International Financial Reporting Standards.

Emphasis of Matter

We draw attention to the basis of opinion paragraph above, which describes the
misreporting of greenhouse gas emissions by Énergie Renouvelables. Our opinion is
not modified in respect of this matter.