Page 164 - CA Final PARAM Digital Book.

Statement of Average Revenue Per Booking (ARPB) and Comparative
(in ₹ or otherwise stated)

Total Bookings during FY
- FY 2021-22 36500
- FY 2022-23 39000
Average Revenue per Booking
- FY 2021-22 (Refer Note 28 Revenue from Operations) 3500
- FY 2022-23 (Refer Note 28 Revenue from Operations) 4200
Bookings Ratio (Organic source by Inorganic source
- FY 2021-22 1:2
- FY 2022-23 1:1.65

Kindly guide the audit team regarding the requirement of SA 700 with respect to the Supplementary
Information Presented with the Financial Statements.
Answer As per SA 700 “Forming an Opinion and Reporting on Financial Statements”, 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.

The auditor’s evaluation of whether unaudited supplementary information is presented in a manner that
could be construed as being covered by the auditor’s opinion includes, for example, where that information
is presented in relation to the financial statements and any audited supplementary information and whether
it is clearly labelled as “unaudited.”

In the current case, the Statement of Average Revenue Per Booking (ARPB) and Comparative is unaudited
supplementary information that could be construed as being covered by the auditor’s opinion. Hence, the
audit team should evaluate whether such supplementary information is presented in a way that sufficiently
and clearly differentiates it from the audited financial statements. If not, then audit can suggest
management to change the presentation of unaudited supplementary information by:

- Removing any cross-references from the financial statements to unaudited supplementary schedules
or unaudited notes so that the demarcation between the audited and unaudited information is
sufficiently clear.
- Placing the unaudited supplementary information outside of the financial statements or, if that is not
possible in the circumstances, at a minimum placing the unaudited notes together at the end of the
required notes to the financial statements and clearly labelling them as unaudited. Unaudited notes
that are intermingled with audited notes can be misinterpreted as being audited.

If the management of XYZ Limited refuses to do so, the auditor shall identify the unaudited supplementary
information, i.e., Statement of ARPB and Comparative and explain in the auditor’s report that such
supplementary information has not been audited.

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