Page 174 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
3. Inclusion of Auditor’s Report: Management is responsible to include the auditor’s report on the summary
financial statements in any document that contains the summary financial statements and indicates that the
auditor has reported on them.
c) Agree with management on the form of opinion to be expressed on the summary financial statements.

(CNO SA- 810.060) Nature of Procedures to be Performed by Auditor

The auditor shall perform specific procedures, and any others deemed necessary, as the basis for the auditor’s
opinion on the summary financial statements.
(Shortcut: DADA @ CCD)
Evaluating Disclosures: The auditor evaluates whether the summary financial statements adequately disclose
their summarised nature and identify the audited financial statements.
Availability of AFS: The auditor evaluates whether the audited financial statements are available to the intended
users of the summary financial statements without undue difficulty, unless law or regulation provides otherwise.
Description of Availability of AFS: When summary financial statements are not accompanied by the audited
financial statements, the auditor evaluates whether they clearly describe from whom or where the audited
financial statements are available, or the relevant law or regulation.
Appropriate Level of Aggregation: The auditor evaluates, considering the purpose of the summary financial
statements, whether they contain the necessary information and are at an appropriate level of aggregation to
avoid being misleading.
Comparison with AFS: The auditor compares the summary financial statements with the related information
in the audited financial statements to determine agreement or re-calculation possibility.
Compliance with Applied Criteria: The auditor evaluates whether the summary financial statements are
prepared in accordance with the applied criteria.
Disclosure of Applied Criteria: The auditor evaluates whether the summary financial statements adequately
disclose the applied criteria.

(CNO SA- 810.080) Form of Opinion
1. Wordings: When an unmodified opinion is appropriate, the auditor shall use one of the specified phrases,
indicating that the summary financial statements are consistent or a fair summary of the audited financial
statements, in accordance with the applied criteria.
2. Wordings by Law: If law or regulation prescribes different wording for the opinion, the auditor shall apply
necessary procedures to express the prescribed opinion and evaluate whether additional explanation can mitigate
possible misunderstanding by users.
2A. Mitigating Misunderstanding: If additional explanation in the auditor’s report cannot mitigate possible
misunderstanding, the auditor shall not accept the engagement, unless required by law or regulation.
2B. No reference to SA: An engagement conducted under such law or regulation does not comply with this SA,
and the auditor’s report shall not indicate compliance with this SA.
Elements of Auditor’s Report on Summary Financial Statements
The auditor’s report on summary financial statements shall include following elements:
(a) Title: A title clearly indicating it as the report of an independent auditor
(b) Addressee: If the addressee of the summary financial statements differs from the addressee of the auditor’s
report on the audited financial statements, the auditor evaluates the appropriateness of using a different
addressee, considering factors like the terms of the engagement, the nature of the entity, and the purpose of the
summary financial statements.
c) An introductory paragraph:
Identification of Summary Financial Statements: The auditor identifies the summary financial statements
being reported on, including the title of each statement. If included in a document with other information, page
numbers may be identified to help readers locate the relevant statements.

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