INDEPENDENT AUDIT REPORT 117  INDEPENDENT AUDIT REPORT Liability limited by a scheme approved  under Professional Standards Legislation  DL:VP:METALSX:009  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our  audit opinion.  An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in  the financial report. The procedures selected depend on the auditor's judgment, including the assessment  of the risks of material misstatement of the financial report, whether due to fraud or error. In making  those risk assessments, the auditor considers internal controls relevant to the entity's 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 controls. 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.  Our responsibility is to express an opinion on the financial report based on our audit. We conducted our  audit in accordance with Australian Auditing Standards. Those standards require that we comply with  relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain  reasonable assurance about whether the financial report is free from material misstatement.  The directors of the company are responsible for the preparation of the financial report that gives a true  and fair view in accordance with Australian Accounting Standards and the  Corporations Act 2001  and for  such internal controls as the directors determine are necessary to enable the preparation of the financial  report that is free from material misstatement, whether due to fraud or error. In Note 2 (b), the directors  also state, in accordance with Accounting Standard AASB 101  Presentation of Financial Statements , that  the financial statements comply with  International Financial Reporting Standards .  We have audited the accompanying financial report of Metals X Limited, which comprises the consolidated  statement of financial position as at 30 June 2011, the consolidated statement of comprehensive income,  the consolidated statement of changes in equity and the consolidated statement of cash flows for the year  then ended, notes comprising a summary of significant accounting policies and other explanatory  information, and the directors' declaration of the consolidated entity comprising the company and the  entities it controlled at the year's end or from time to time during the financial year.  Independent auditor's report to the members of Metals X Limited  Report on the financial report  Directors' responsibility for the financial report  Auditor's responsibility  Independence  In conducting our audit we have complied with the independence requirements of the  Corporations Act  2001 . We have given to the directors of the company a written Auditor’s Independence Declaration, a  copy of which is included in the directors’ report.