Page 147 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

As required by SA 580, the auditor shall request written representations for all periods referred to in the auditor’s
opinion. The auditor shall also obtain a specific written representation regarding any prior period item that is
separately disclosed in the current year’s statement of profit and loss.

(CNO - SA 710.060) Audit Reporting
With Reference to Corresponding Figures:
No Reference to Corresponding Figures:
When corresponding figures are presented, the auditor’s opinion shall not refer to the corresponding figures
except in certain circumstances described in below given paragraphs.

Prior Period's Modified Opinions:
If the auditor’s report on the prior period, as previously issued, included a qualified opinion, a disclaimer of
opinion, or an adverse opinion and the matter which gave rise to the modification is unresolved, the auditor
shall modify the auditor’s opinion on the current period’s financial statements. In the Basis for Modification
paragraph in the auditor’s report, the auditor shall either:
(a) Refer to both the current period’s figures and the corresponding figures in the description of the matter giving
rise to the modification when the effects or possible effects of the matter on the current period’s figures are
material; or
(b) In other cases, explain that the audit opinion has been modified because of the effects or possible effects of
the unresolved matter on the comparability of the current period’s figures and the corresponding figures.

Misstatement in Prior Period:
If the auditor obtains audit evidence that a material misstatement exists in the prior period financial statements
on which an unmodified opinion has been previously issued, the auditor shall verify whether the misstatement
has been dealt with as required under the applicable financial reporting framework and, if that is not the case,
the auditor shall express a qualified opinion or an adverse opinion in the auditor’s report on the current period
financial statements, modified with respect to the corresponding figures included therein. (After this can apply
same approach as discussed earlier)
With Reference to Comparative Financial Statement:
Refer to each period: When comparative financial statements are presented, the auditor’s opinion shall refer to
each period for which financial statements are presented and on which an audit opinion is expressed.
Different Opinion on Prior Period: When reporting on prior period financial statements in connection with
the current period’s audit, if the auditor’s opinion on such prior period financial statements differs from the
opinion the auditor previously expressed, the auditor shall disclose the substantive reasons for the different
opinion in an Other Matter paragraph in accordance with SA 706
Material Misstatement in Prior Period: If the auditor concludes that a material misstatement exists that affects
the prior period financial statements on which the predecessor auditor had previously reported without
modification, the auditor shall communicate the misstatement with the appropriate level of management and
those charged with governance and request that the predecessor auditor be informed. If the prior period financial
statements are amended, and the predecessor auditor agrees to issue a new auditor’s report on the amended
financial statements of the prior period, the auditor shall report only on the current period.
Reporting treatment common to both (for corresponding figures and comparative information):

Predecessor Audit: If the financial statements of the previous period were audited by a predecessor auditor and
the current auditor chooses to refer to the predecessor audit report for corresponding figures, the audit report
must include:
• A statement that the financial statements of the previous period were audited by a predecessor auditor.
• The type of opinion expressed by the predecessor auditor.
• The date of the predecessor audit report.

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