Page 177 - CA Final PARAM Digital Book.

➢ If the auditor is unable to obtain sufficient
appropriate audit evidence, the auditor shall Limitation of Scope after acceptance
determine the implications as follows: Likely to result in Modification of
• If the auditor concludes that the possible Opinion
effects on the financial statements of Ask Mgmt to remove such Limitation
undetected misstatements, if any, could be
material but not pervasive, the auditor shall If Mgmt refuses, go to TCWG &
qualify the opinion; or Perform Alternate Audit Procedures
• If the auditor concludes that the possible Not Able to obtain S&A audit evidence
effects on the financial statements of
undetected misstatements, if any, could be Not Pervasive Pervasive
both material and pervasive so that a
qualification of the opinion would be Qualify
inadequate to communicate the gravity of Resign DOM
If At
the situation, the auditor shall: If At Initial Advanced
Stage
• Withdraw from the audit, where Stage
practicable and possible under applicable
law or regulation; or
• If withdrawal from the audit before issuing the auditor’s report is not practicable or
possible, disclaim an opinion on the financial statements.

➢ If the auditor withdraws as discussed above, before withdrawing, the auditor shall communicate to
those charged with governance any matters regarding misstatements identified during the audit
that would have given rise to a modification of the opinion

No Co-operation & Obligation After Resignation Old Course - (N14E, PM17, N20E)
119.030
TITANIUM CNO— SA705.060
What are the professional obligations of the statutory auditor who has resigned before completion of his

term due to non-co-operation of the Management in completing certain audit procedures?
Resignation Due to Management Imposing Limitation on the Scope of Audit : SA 705 "Modifications to
the Opinion in the Independent Auditor's Report" provides the consequence of an inability to obtain
sufficient appropriate audit evidence due to a management - imposed limitation after the auditor has
accepted the engagement. The practicability of resigning from the audit may depend upon the stage of
completion of the engagement at the time that management Imposes the scope limitation.

When the auditor concludes that resignation from the audit is necessary because of a scope limitation,
there may be a professional, regulatory or legal requirement for the auditor to communicate matters
relating to the resignation from the engagement to regulators or the entity's owners.

In the case of resignation from the company, provisions of the Companies Act, 2013 apply. Section 140(2)
of the Companies Act, 2013, requires the auditor, who has resigned from the company to file within a
period of 30 days. from the date of resignation, a statement with the company and the registrar, and in
case of government companies, the auditor shall file such statement with the Comptroller and Auditor-
General of India, indicating the reasons and other facts as may be relevant with regard to his resignation.
In case of failure the auditor will be liable for penal provisions.

QNO Drafting Disclaimer of opinion. Old Course – (N18M, M18M)
119.100 TITANIUM CNO— Unique
As an auditor of ABC Limited, in view of given circumstances, you are required to draft disclaimer of opinion
and basis for disclaimer of opinion due to the Auditor’s Inability to Obtain Sufficient Appropriate Audit
Evidence about Multiple Elements of the Financial Statement.

Audit of a complete set of financial statements of an entity other than a company incorporated under the
Companies Act, 2013, using a fair presentation framework. The audit is not a group audit (i.e., SA 600, does
not apply).

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