Page 150 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Communication with Governance: The auditor shall communicate the matter with those charged with
governance and request that the correction be made.
Material misstatement exists in other information obtained prior to the date of the auditor’s report
Material Misstatement not corrected by TCWG: If the auditor concludes that a material misstatement exists
in other information obtained prior to the date of the auditor’s report, and the other information is not corrected
after communicating with those charged with governance, the auditor shall take appropriate action.
Considering Implications for the Report: Including considering the implications for the auditor’s report and
communicating with those charged with governance about how the auditor plans to address the material
misstatement in the auditor’s report.
Withdrawing from the Engagement: Withdrawing from the engagement, where withdrawal is possible under
applicable law or regulation.
Material misstatement exists in other information obtained after the date of the auditor’s report
Auditor Concludes Material Misstatement Exists: If the auditor concludes that a material misstatement exists
in other information obtained after the date of the auditor’s report, the auditor shall
Perform Necessary Procedures: If the other information is corrected, perform the procedures necessary in the
circumstances; or
Take Appropriate Action: If the other information is not corrected after communicating with those charged
with governance, take appropriate action considering the auditor’s legal rights and obligations, to seek to have
the uncorrected material misstatement appropriately brought to the attention of users for whom the auditor’s
report is prepared.(Speak at AGM)

(CNO - SA 720.120) Responding When a Material Misstatement in the Financial Statements Exists or the
Auditor’s Understanding of the Entity and Its Environment Needs to Be Updated
If, as a result of performing the procedures discussed above, the auditor concludes that a material misstatement
in the financial statements exists or the auditor’s understanding of the entity and its environment needs to be
updated, the auditor shall:
Respond appropriately in accordance with the other SAs.

(CNO - SA 720.140) Reporting
Include a Separate Section with a Heading: The auditor’s report shall include a separate section with a heading
“Other Information”, or other appropriate heading, when, at the date of the auditor’s report:
Audit of Financial Statements of a Listed Entity: For an audit of financial statements of a listed entity, the
auditor has obtained, or expects to obtain, the other information; or
Audit of Financial Statements of an Unlisted Corporate Entity: For an audit of financial statements of an
unlisted corporate entity, the auditor has obtained some or all of the other information.
When the auditor’s report is required to include an Other Information section, this section shall include:
When the auditor’s report is required to include an Other Information section, this section shall include:
1. Identification of Other Information: An identification of other information, if any, obtained by the auditor
prior to the date of the auditor’s report; and for an audit of financial statements of a listed entity, other
information, if any, expected to be obtained after the date of the auditor’s report;
2. Management's Responsibility: A statement that management is responsible for the other information.
3. Auditor’s Responsibilities: A description of the auditor’s responsibilities relating to reading, considering and
reporting on other information as required by this SA; and
4A. Auditor’s opinion does not cover the other information: A statement that the auditor’s opinion does not
cover the other information and, accordingly, that the auditor does not express (or will not express) an audit
opinion or any form of assurance conclusion thereon;

www.auditguru.in 07.24