Page 207 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Auditor’s Conclusion: Depending on the nature of the interim financial information, the report should include
a conclusion on whether anything has come to the auditor’s attention causing them to believe that the
information does not give a true and fair view, or is not prepared, in all material respects, in accordance with the
applicable framework.
Date, Signature, and Membership Number: The report should be dated, include the place of signature, the
auditor’s signature, and membership number assigned by the ICAI, and the Firm’s registration number, if
applicable.
UDIN Requirement: Additionally, UDIN has to be generated and stated for review engagement as it is in nature
of an assurance engagement, applicable for engagements performed in accordance with SRE 2400 or SRE 2410.

(CNO SRE 2410.170) Departure from the Applicable Financial Reporting Framework
Material adjustment not done: The auditor should express a qualified or adverse conclusion when a matter
indicates that a material adjustment is necessary for the interim financial information to comply with the
applicable financial reporting framework. If a departure from the framework is identified and not corrected by
management, the auditor modifies the review report, describing the nature of the departure and, if practicable,
stating the effects on the interim financial information.
No adequate Disclosure: If necessary, information for adequate disclosure is absent in the interim financial
information, the auditor modifies the report and includes the necessary information, typically by adding an
explanatory paragraph and qualifying the conclusion. When the effect of the departure is extremely material and
pervasive, rendering a qualified conclusion inadequate, the auditor expresses an adverse conclusion to disclose
the misleading or incomplete nature of the interim financial information.

(CNO SRE 2410.180) Limitation on Scope
Limitation on Scope: A limitation on scope typically prevents the auditor from completing the review,
necessitating communication regarding the inability to complete the review.
Communication to Management and TCWG: The auditor should communicate in writing to the appropriate
level of management and those charged with governance the reason why the review cannot be completed.
Consideration for Issuing a Report: In such cases, the auditor needs to consider whether it is appropriate to
issue a report, evaluating the implications of the limitation on the scope of the review.
Limitation on Scope Imposed by Management
1. Before Acceptance- (Don’t Accept): An auditor will not accept a review engagement if preliminary
knowledge indicates a limitation on the scope of the review imposed by the entity's management.
2A. After Acceptance (Cannot Complete Review): If a limitation is imposed after accepting the engagement,
the auditor requests its removal. If management refuses, the auditor cannot complete the review.
2B. Communicate to TCWG: In cases where the review cannot be completed due to limitations, the auditor
communicates the reason in writing to the appropriate management level and those charged with governance.
2C. Qualify or Disclaim: The auditor considers legal and regulatory responsibilities, including the requirement
to issue a report. If required, the auditor disclaims a conclusion and provides the reason for the incomplete review
in the report.
3.Material Adjustment: If the auditor believes a material adjustment to the interim financial information is
necessary for it to be prepared in accordance with the applicable financial reporting framework, such matters are
communicated. If a material adjustment is necessary, it is also communicated in the report.
Other Limitations on Scope
Other Limitations on Scope: A limitation on scope can occur due to circumstances other than those imposed
by management, typically preventing the auditor from completing the review and expressing a conclusion.
Modification of Report: In rare cases, where the limitation is confined to specific matters that are material but
not pervasive, the auditor modifies the review report, indicating exceptions and qualifying the conclusion.

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