Page 196 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
In these circumstances, the practitioner considers that the evidence from procedures performed is not sufficient
and appropriate to form a conclusion on the financial statements.

Possible Courses of Action:
The practitioner may:
• Extend Work: Extend the work performed.
• Perform Other Procedures: Perform other procedures judged by the practitioner to be necessary in the
circumstances.

Inability to Obtain Evidence: Where neither of the above is practicable, the practitioner cannot obtain
sufficient evidence to form a conclusion. They are required by this SRE to determine the effect on the report, or
on their ability to complete the engagement, for instance, if a management member is unavailable to respond to
inquiries on significant matters.
Basic Principle- Discussion & Limitation of Scope.
If the practitioner is not able to obtain sufficient appropriate evidence to form a conclusion, the practitioner shall
discuss with management and those charged with governance, as appropriate. The effects such limitations have
on the scope of the review.
Further Explanation of above principle.
Inability does not constitute a limitation on the scope: Inability to perform a specific procedure does not
constitute a limitation on the scope of the review if the practitioner is able to obtain sufficient appropriate
evidence by performing other procedures.
Management's Imposed Limitations: Limitations on the scope of the review imposed by management may
have other implications for the review, such as for the practitioner’s consideration of areas where the financial
statements are likely to be materially misstated, and engagement continuance.

(CNO SRE 2400.180) Forming the practitioner’s conclusion on the financial statements
1A. Impact of uncorrected misstatements: In forming a conclusion, the practitioner shall also consider the
impact of uncorrected misstatements identified during the review, and in the previous year’s review of the entity’s
financial statements, on the financial statements as a whole.
1B. Qualitative Aspects of Accounting Practices: The practitioner shall consider qualitative aspects of the
entity’s accounting practices, including indicators of possible bias in management’s judgments.
2A. Fair Presentation Framework (Overall view): If the financial statements are prepared using a fair
presentation framework, the practitioner’s consideration shall also include the overall presentation, structure,
and content of the financial statements in accordance with the applicable framework.
2B. Fair Presentation Framework (underlying transactions and events): The practitioner shall assess whether
the financial statements, including the related notes, appear to represent the underlying transactions and events
in a manner that achieves fair presentation or gives a true and fair view, as appropriate, in the context of the
financial statements as a whole.
3. Appropriate form: The practitioner’s conclusion on the financial statements, whether unmodified or
modified, shall be expressed in the appropriate form in the context of the financial reporting framework applied
in the financial statements.
Unmodified Conclusion:
Obtained limited assurance: The practitioner shall express an unmodified conclusion in the practitioner’s
report on the financial statements as a whole when the practitioner has obtained limited assurance.

As per AFRF: The practitioner is able to conclude that nothing has come to the practitioner’s attention that
causes the practitioner to believe that the financial statements are not prepared, in all material respects, in
accordance with the applicable financial reporting framework.

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