Page 163 - CA Final PARAM Digital Book.

International Standards on Auditing or auditing standards of such other jurisdiction, but the auditor
shall do so only if:
• There is no conflict between the requirements in the ISAs or such auditing standards of other
jurisdiction and those in SAs that would lead the auditor.
• to form a different opinion, or
• not to include an Emphasis of Matter paragraph or Other Matter paragraph that, in
the particular circumstances, is required by SAs; and

• The auditor’s report includes, at a minimum, each of the elements set out for audit report as
per law.
➢ When the auditor’s report refers to both the ISAs or the auditing standards of a specific jurisdiction and
the Standards on Auditing issued by ICAI, the auditor’s report shall clearly identify the same including
the jurisdiction of origin of the other auditing standards.

Supplementary Information--Additional P&L is given in Old Course – (M21E, M23R,N23M)
QNO Financial Statements which is not required by FRF
111.060
TITANIUM CNO—SA700.400
CA. S has been appointed as Statutory Auditor of SRT Ltd. for the financial year 2020-2021. The Company
while preparing financial statements for the year under audit prepared one additional profit and loss
account that disclosed specific items of expenditure and included the same as an appendix to the financial

statements. CA. S has not been able to understand this as the additional profit and loss account is not covered
under applicable financial reporting framework. Guide him as to how he should deal with this issue while
reporting on the financial statements of SRT Ltd.
Answer If supplementary information that is not required by the applicable financial reporting framework is
presented with the audited financial statements, the auditor shall evaluate whether, in the auditor’s
professional judgment, supplementary information is nevertheless an integral part of the financial
statements due to its nature or how it is presented.

When it is an integral part of the financial statements, the supplementary information shall be
covered by the auditor’s opinion.

If supplementary information that is not required by the applicable financial reporting framework is
not considered an integral part of the audited financial statements, the auditor shall evaluate
whether such supplementary information is presented in a way that sufficiently and clearly
differentiates it from the audited financial statements. If this is not the case, then the auditor shall ask
management to change how the unaudited supplementary information is presented. If management
refuses to do so, the auditor shall identify the unaudited supplementary information and explain in the
auditor’s report that such supplementary information has not been audited.

When an additional profit and loss account that discloses specific items of expenditure is disclosed as a
separate schedule, included as an appendix to the financial statements, the auditor may consider this to be
supplementary information that can be clearly differentiated from the financial statements.

Thus, additional profit and loss account is not considered an integral part of the audited financial
statements and the auditor shall evaluate that supplementary information is presented in a way that
sufficiently and clearly differentiates it from the audited financial statements.

QNO Supplementary Information - Case Study Old Course – (N23R)
111.070 TITANIUM CNO-- SA700.400
XYZ Limited involved in the hospitality business, appointed Charan & Karan Associates as their statutory
auditor for FY 2022-23. Management of XYZ Limited, while drawing up the financial statement for the said
period, decided to add the following statement after the Statement of Cash Flow as supplementary
information to be presented with financial statements. No specific mentions or labels were added to this
statement to present that this is supplementary information.

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