Page 132 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

- Ensure financial statements represent transactions and events fairly.
- Division of Responsibility (If applicable) (Put OMP in this section)
When SA 600, “Using the Work of Another Auditor”, applies, further describe the auditor’s responsibilities in a
group audit engagement by stating, the division of responsibility for the financial information of the entity by
indicating the extent to which the financial information of components is audited by the other auditors have
been included in the financial information of the entity, e.g., the number of divisions/branches/subsidiaries or
other components audited by other auditors
Part 3 Communication:
Shortcut: KIA
1. Key Audit Matters:
For audits under SA 701:
- Determined key audit matters from those communicated with governance.
- These are matters most significant to the current period's financial statement audit.
- Describe these matters in the auditor's report, unless:
- Law or regulation prevents public disclosure.
- Extremely rare circumstances dictate that disclosure may not be in the public interest.
2. Ethics & Independence:
- Provide governance a statement that:
- Auditor complied with relevant ethical requirements regarding independence.
- All relationships and potential conflicts affecting auditor’s independence are communicated.
- Relevant safeguards are applied where necessary.
3. Audit plan & findings:
- Communicate with governance about:
- Planned audit scope and timing.
- Significant audit findings.
- Significant deficiencies in internal control identified during the audit.
Location of the description of the auditor’s responsibilities for the audit of the financial statements:
(Shortcut: RAW)
Report: The description of the auditor’s responsibilities for the audit of the financial statements can be included
within the body of the auditor's report.
Appendix: Alternatively, it can be included in an appendix to the auditor's report, with a reference to the location
of the appendix in the auditor's report.
Website: It can also be referenced within the auditor's report to the location of such a description on a website
of an appropriate authority, if permitted by law, regulation, or auditing standards.If the auditor refers to a
website, they must ensure that the description on the website aligns with the requirements of the auditing
standards.

Part II Report on Other Legal & Regulatory Requirement

(CNO - SA 700.260) Other Reporting Responsibilities:
1. Additional Responsibilities: If the auditor has other reporting responsibilities beyond the Standards on
Auditing (SAs), these should be addressed in a separate section of the auditor's report. This section can be titled
"Report on Other Legal and Regulatory Requirements" or something suitable to the content. However, if these
additional responsibilities cover the same topics as the SAs, they can be included in the same section as the related
SA elements.
2. Differentiation: If other reporting responsibilities are presented in the same section as the SA-required
elements, the auditor's report must clearly distinguish between the two.
3. Sections & Order: If the auditor’s report contains a separate section that addresses other
reporting. responsibilities, the requirements of this SA shall be included under a section with a heading “Report

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