Page 151 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

4B. Reporting on Obtained Other Information: When other information has been obtained prior to the date
of the auditor’s report, either:
A statement that the auditor has nothing to report; or
If the auditor has concluded that there is an uncorrected material misstatement of the other information, a
statement that describes the uncorrected material misstatement of the other information.
4C. Consideration for Qualified or Adverse Opinion: When the auditor expresses a qualified or adverse
opinion in accordance with SA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report
the auditor shall consider the implications of the matter giving rise to the modification of opinion for the
statement required.
Reporting Prescribed by Law or Regulation
Reporting Prescribed by Law or Regulation: If the auditor is required by a relevant law or regulation to refer
to the other information in the auditor’s report using a specific layout or wording, the auditor’s report shall refer
to Standards on Auditing only if the auditor’s report includes, at a minimum:
Identification of Other Information: Identification of the other information obtained by the auditor prior to
the date of the auditor’s report;
Auditor’s Responsibilities Description: A description of the auditor’s responsibilities with respect to the other
information; and
Explicit Statement on Auditor’s Work Outcome: An explicit statement addressing the outcome of the
auditor’s work for this purpose.

Companies Act 2013.

(CNO CA.020) Duties of Auditors
Sections 143 of the Companies Act, 2013 specifies the duties of an auditor of a company in a quite comprehensive
manner. It is noteworthy that scope of duties of an auditor has generally been extending over all these years.
1. Sec 143(1) Duty of Auditor to Inquire on certain matters
1. Share Allotment for Cash: If it's stated that shares have been allotted for cash, whether actual cash has been
received and if the account books and balance sheet representation is correct and not misleading.
2. Loans and Advances given: Whether loans and advances made by the company on the basis of security have
been properly secured and if the terms are prejudicial to the company or its members.
3. Personal Expenses: Whether personal expenses have been charged to the revenue account.
4. Securities Sale Price: Where the company isn't an investment or banking company, if assets like shares,
debentures, and other securities have been sold at a lower price than their purchase price.
5. Book Entry Transactions: Whether transactions represented merely by book entries are prejudicial to the
company's interests.
6. Loans & advances as Deposits: Whether loans and advances made by the company are shown as deposits.
Opinion of Research Committee: The opinion of the Research Committee of the Institute of Chartered
Accountants of India on section 143(1) is reproduced below:
Reporting if any Special Comments: The auditor is not required to report on the matters specified in sub-
section (1) unless he has any special comments to make on any of the items referred to therein.
No reporting if satisfied: If he is satisfied as a result of the inquiries, he has no further duty to report that he
is so satisfied.
Other Contents of Audit Report: In such a case, the content of the
Auditor’s Report will remain exactly the same as the auditor has to inquire and apply his mind to the
information elicited by the enquiry, in deciding whether or not any reference needs to be made in his report.

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