Page 227 - CA Final PARAM Digital Book.

of opinion.
2B. Describe: Describe the basis for that adverse opinion or disclaimer of opinion.
2C. Inappropriateness to Express Opinion: State that, as a result of the adverse opinion or disclaimer
of opinion, it is inappropriate to express an opinion on the summary financial statements. (Denial Of
Opinion)

New Course – (SM23)
Impact Of Qualified Opinion on Complete Set on Report on Summary
QNO
810.400 Financial Statement
TITANIUM CNO-- SA 810.100

Consider that the audit report on financial statements issued by CA Madhur for above said company
contains qualified opinion. Can he issue an unmodified opinion on summary financial statements derived
from audited financial statements? Discuss.
Answer 1. SA 810: Reference to SA 810, its full name & its applicable in the given scenario.
2. Concept: (CNO SA- 810.100) Modifications to the Opinion, EMP or OMP in the Auditor’s Report on the
Audited Financial Statements
1. Situation: When the auditor’s report on the audited financial statements contains a qualified opinion,
an Emphasis of Matter paragraph, or an Other Matter paragraph, but the auditor is satisfied that the
summary financial statements are consistent, in all material respects, with or are a fair summary of the
audited financial statements, in accordance with the applied criteria.
2A. State Situation: The auditor’s report on the summary financial statements shall state that the
auditor’s report on the audited financial statements contains a qualified opinion, an Emphasis of Matter
paragraph, or an Other Matter paragraph.
2B. Describe: Describe the basis for the qualified opinion on the audited financial statements, and that
qualified opinion; or the Emphasis of Matter or the Other Matter paragraph in the auditor’s report on
the audited financial statements.
2C. Effect on Summary Financial Statements: Describe the effect thereof on the summary financial
statements, if any.

3. Case Discussion: Discuss Case.
4. Conclusion: CA Madhur can report on summary as discussed above.

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