Page 200 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Placement and Heading of Emphasis of Matter Paragraph: The practitioner shall include this paragraph
immediately after the conclusion on the financial statements under the heading “Emphasis of Matter,” or other
appropriate heading.
Other Matter Paragraph: If necessary to communicate a matter not presented or disclosed in the financial
statements but relevant to users’ understanding of the review, responsibilities, or the report, and not prohibited
by law, the practitioner shall include a paragraph with the heading “Other Matter” or other appropriate heading.
Other Reporting Responsibilities
Addressing Other Reporting Responsibilities: A practitioner may be requested to address other reporting
responsibilities in the practitioner’s report on the financial statements that are in addition to the practitioner’s
responsibilities under this SRE to report on the financial statements.
Separate Section in the Practitioner’s Report: In such situations, those other reporting responsibilities shall
be addressed by the practitioner in a separate section in the practitioner’s report, following the section headed
“Report on the Financial Statements.”
Heading for Separate Section:
This separate section shall be headed “Report on Other Legal and Regulatory Requirements,” or otherwise as
appropriate to the context of the section.

(CNO SRE 2400.220) Documentation
1. Documentation Purpose: The preparation of documentation for the review provides evidence that the review
was performed in accordance with this SRE, along with legal and regulatory requirements where relevant, and a
sufficient and appropriate record of the basis for the practitioner’s report.
2. Documentation of Engagement Aspects: The practitioner shall document the following aspects of the
engagement in a timely manner, sufficient to enable an experienced practitioner, having no previous connection
with the engagement, to understand:
2A. Procedures Performed: The nature, timing, and extent of the procedures performed to comply with this
SRE and applicable legal and regulatory requirements.
2B. Results and Conclusions: Results obtained from the procedures, and the practitioner’s conclusions formed
on the basis of those results.
2C. Significant Matters and Judgments: Significant matters arising during the engagement, the practitioner’s
conclusions reached thereon, and significant professional judgments made in reaching those conclusions.
Documenting the nature, timing, and extent of procedures.
While documenting the nature, timing, and extent of procedures performed as required in this SRE,
Who performed & when: the practitioner shall record who performed the work and the date such work was
completed.
Who reviewed: Who reviewed the work performed for the purpose of quality control for the engagement, and
the period and extent of the review, shall also be recorded.
Discussions: The practitioner shall document discussions with management, those charged with governance,
and others as relevant to the performance of the review of significant matters arising during the engagement,
including the nature of those matters.
Inconsistencies: If the practitioner identified information that is inconsistent with the findings regarding
significant matters affecting the financial statements, the practitioner shall document how the inconsistency was
addressed.

(CNO SRE 2400.240) Audit Vs. Review
Audit Vs. Review: An audit engagement has many similarities with a review engagement. However, there are
certain important areas of distinction relating to the nature of engagement, its performance, objective, and
reporting.
Overview of distinctive areas between Audit and Review

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