Page 129 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

(CNO - SA 700.080) Title:
The auditor's report must have a title that clearly signifies it as the work of an independent auditor. For instance,
using the title "Independent Auditor's Report" helps distinguish it from reports issued by other entities.

(CNO - SA 700.100) Addressee:
The auditor's report must be addressed as required by the circumstances of the engagement. For instance, in the
case of general purpose (statutory) financial statements, the report should be addressed to the members of the
company. In case of special purpose financial statements, the report should be addressed to the Board of
Directors.

Part I Report on FST
(CNO - SA 700.120) Auditor’s Opinion:
The first section of the auditor’s report shall include the auditor’s opinion and shall have the heading “Opinion.”
1. Identification: The report should identify the entity whose financial statements have been audited.
2. Audit Engagement: The report should explicitly state that the financial statements of the identified entity
have been audited.
3. Titles: The report should identify the title of each statement that comprises the financial statements.
4. Notes to accounts: The report should refer to the notes, including the summary of significant accounting
policies.
5. Date or Period: The report should specify the date of, or the period covered by, each financial statement that
comprises the financial statements.

(CNO - SA 700.140) Opinion wordings - Expression of Unmodified Opinion
Fair Presentation Framework: When expressing an unmodified opinion on financial statements prepared in
accordance with a fair presentation framework, the auditor's opinion should use one of the following equivalent
phrases, unless otherwise required by law or regulation:
• "In our opinion, the accompanying financial statements present fairly, in all material respects, [...] in
accordance with [the applicable financial reporting framework]."
• "In our opinion, the accompanying financial statements give a true and fair view of [...] in accordance with
[the applicable financial reporting framework]."
Compliance Framework: When expressing an unmodified opinion on financial statements prepared in
accordance with a compliance framework, the auditor's opinion should state that the accompanying financial
statements are prepared, in all material respects, in accordance with [the applicable financial reporting
framework].
Non-Accounting Standards Framework: If the reference to the applicable financial reporting framework in
the auditor's opinion is not to Accounting Standards, the auditor's opinion should identify the origin of such
other framework.

(CNO - SA 700.160) Basis for Opinion:
1. Ethical & Independent: The report should include a statement that the auditor is independent of the entity
in accordance with the relevant ethical requirements relating to the audit and has fulfilled the auditor's other
ethical responsibilities in accordance with these requirements. This statement should refer to the Code of Ethics
issued by ICAI.
2. Audit as per SAs: The report should state that the audit was conducted in accordance with the Standards on
Auditing.
3. Reference: The report should refer to the section that describes the auditor's responsibilities under the
Standards on Auditing.

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