Page 176 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Adverse or a disclaimer of opinion
1. Situation: When the auditor’s report on the audited financial statements contains an adverse opinion or a
disclaimer of opinion, the auditor’s report on the summary financial statements shall, additionally: -
2A. State Situation: When the auditor’s report on the audited financial statements contains an adverse opinion
or a disclaimer of opinion, the auditor’s report on the summary financial statements shall state that the auditor’s
report on the audited financial statements contains an adverse opinion or disclaimer of opinion.
2B. Describe: Describe the basis for that adverse opinion or disclaimer of opinion.
2C. Inappropriateness to Express Opinion: State that, as a result of the adverse opinion or disclaimer of
opinion, it is inappropriate to express an opinion on the summary financial statements. (Denial Of Opinion)
Modified Opinion on the Summary Financial Statements
Inconsistency: If the summary financial statements are not consistent, in all material respects, with or are not a
fair summary of the audited financial statements, in accordance with the applied criteria.
Disagreement: And management does not agree to make the necessary changes.
Adverse Opinion: The auditor shall express an adverse opinion on the summary financial statements.
Restriction on Distribution or Use or Alerting Readers to the Basis of Accounting
1. Restricted Distribution or Use: When distribution or use of the auditor’s report on the audited financial
statements is restricted.
2A. Alert on Special Purpose Framework: Or the auditor’s report on the audited financial statements alerts
readers that the audited financial statements are prepared in accordance with a special purpose framework.
2B. Include Similar Restriction or Alert: The auditor shall include a similar restriction or alert in the auditor’s
report on the summary financial statements.

(CNO SA- 810.120) Other Points
Comparatives
Omission in Summary Financial Statements Comparatives in the audited financial statements may be
regarded as corresponding figures or as comparative financial information. If the audited financial statements
contain comparatives, but the summary financial statements do not, the auditor shall determine whether such
omission is reasonable in the circumstances of the engagement. The auditor shall determine the effect of an
unreasonable omission on the auditor’s report on the summary financial statements.
Another Auditor: If the summary financial statements contain comparatives that were reported on by another
auditor. The auditor’s report on the summary financial statements shall also contain the matters that SA 710
requires the auditor to include in the auditor’s report on the audited financial statements.
Unaudited Supplementary Information Presented with Summary Financial Statements
Evaluate Differentiation: The auditor shall evaluate whether any unaudited supplementary information
presented with the summary financial statements is clearly differentiated from the summary financial statements.
Not clearly differentiated: If the auditor concludes that the entity’s presentation of the unaudited
supplementary information is not clearly differentiated from the summary financial statements, the auditor shall
ask management to change the presentation of the unaudited supplementary information.
Management's Refusal: If management refuses to do so.The auditor shall explain in the auditor’s report on the
summary financial statements that such information is not covered by that report.
Other Information in Documents Containing Summary Financial Statements
Read Other Information: The auditor shall read the other information included in a document containing the
summary financial statements and related auditor’s reports to consider whether there is a material inconsistency
between the other information and the summary financial statements.
Identifying Material Inconsistency: If the auditor identifies a material inconsistency, the auditor shall
determine whether the summary financial statements or the other information needs to be revised. If the auditor

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