Page 224 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
a modified opinion is nevertheless appropriate in accordance with the Framework for Assurance Engagements,
the practitioner shall discuss the matter with the responsible party.
Actions upon Disagreement: If the responsible party does not agree to make necessary changes, the practitioner
shall either withdraw from the engagement or consider seeking legal advice.
2. Law or regulation doesn’t preclude publication: Where relevant law or regulation doesn’t preclude a
prospectus with a modified opinion, and a modified opinion is deemed appropriate, the practitioner shall adhere
to the Framework for Assurance Engagements' requirements concerning modified opinions.
Emphasis of Matter Paragraph
Inclusion of EMP: In certain scenarios, the practitioner may find it imperative to highlight a matter in the pro
forma financial information or its explanatory notes, especially when it is crucial for the user’s understanding of
the compilation basis of the pro forma financial information.
Does not impact the compilation: The practitioner shall include an Emphasis of Matter paragraph in the report,
ensuring that sufficient appropriate evidence is obtained, confirming that the matter does not impact the
compilation of the pro forma financial information based on the applicable criteria.
Reference to Information: The Emphasis of Matter paragraph shall solely refer to information presented or
disclosed in the pro forma financial information or the accompanying explanatory notes.

(CNO 3420.180) Preparing the Assurance Report (
1. Title: A title that clearly indicates that the report is an independent assurance report.
2. Addressee(s): An addressee(s), as agreed in the terms of engagement.
3. Introductory paragraphs that identify: -
Pro Forma Information
Source of Unadjusted Information: The source from which the unadjusted financial information has been
extracted and whether or not an audit or review report on such a source has been published.
Period or Date of Information: The period covered by, or the date of, the pro forma financial information.
Reference to Applicable Criteria: A reference to the applicable criteria on the basis of which the responsible
party has performed the compilation of the pro forma financial information, and the source of the criteria.
4. Responsible Party’s Responsibility: A statement that the responsible party is responsible for compiling the
pro forma financial information on the basis of the applicable criteria.
5. Practitioner's Responsibility: A description of the practitioner’s responsibilities, including statements that: -
The practitioner’s responsibility is to express an opinion about whether the pro forma financial information has
been compiled, in all material respects, by the responsible party on the basis of the applicable criteria.
5A. No Responsibility for Updating Reports: For purposes of this engagement, the practitioner is not
responsible for updating or reissuing any reports or opinions on any historical financial information used in
compiling the pro forma financial information.
5B. No Audit or Review Performed: Nor has the practitioner, in the course of this engagement, performed an
audit or review of the financial information used in compiling the pro forma financial information.
5C. No Assurance on actual outcome: The purpose of pro forma financial information included in a prospectus
is solely to illustrate the impact of a significant event or transaction on unadjusted financial information of the
entity as if the event had occurred or the transaction had been undertaken at an earlier date selected for purposes
of the illustration. Accordingly, the practitioner does not provide any assurance that the actual outcome of the
event or transaction at that date would have been as presented.
5D. Engagement Accordance with SAE 3420: A statement that the engagement was performed in accordance
with SAE 3420 ‘Assurance Engagements to Report on the Compilation of Pro Forma Financial Information
Included in a Prospectus’, which requires that the practitioner comply with ethical requirements and plan and
perform procedures to obtain reasonable assurance about whether the responsible party has compiled, in all
material respects, the pro forma financial information on the basis of the applicable criteria

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