Page 40 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
3A. Other Matter Paragraph: In such circumstances (Separate Report) the audit report(s) issued by the joint
auditor(s) shall make a reference to the separate audit report(s) issued by the other joint auditor(s). Further,
separate audit report shall also refer to the audit report issued by other joint auditors. Such reference shall be
made under the heading “Other Matter Paragraph” as per SA 706.

(CNO-SA299.140) Assumption by Joint Auditor w.r.t other joint Auditors.
1.Compliance with SA’s: Joint auditors can assume other joint auditors have adhered to the Standards on
Auditing issued by the Institute of Chartered Accountants of India, so no need for review or validation of their
work.
2.Departures & significant observations: He can assume that other joint auditors have informed of any
departure from the financial reporting framework. They have shared significant observations relevant to
responsibilities noticed during the audit.
3.Branch / Division FST (Audited by other Joint Auditors): Joint auditors can assume financial statements of
a division/branch are in compliance with legal and regulatory requirements. These statements present a true and
fair view of the division's/branch's state of affairs and operations.

(CNO-SA299.160) Communication with Those Charged with Governance
Opinion Modification Communication: When anticipating a modification in the auditor's report, the joint
auditors must discuss the reasons behind the proposed modification wording with TCWG as per SA 705.
Emphasis or Other Matter Paragraph Communication: If the auditors plan to include an "Emphasis of
Matter" or an "Other Matter" paragraph, they should inform and discuss the proposed content with those in
charge of governance, ensuring compliance with SA 706.

SA 402

AUDIT CONSIDERATIONS RELATING TO AN ENTITY USING A SERVICE ORGANISATION

(CNO-SA402.020) Introduction.
Auditor’s Responsibility: SA 402 deals with the user auditor’s responsibility to obtain sufficient appropriate
audit evidence when a user entity uses the services of one or more service organisations.
Application of SA 315 & SA 330: Specifically, it expands on how the user auditor applies SA 315 and SA 330 in
obtaining an understanding of the user entity, including internal control relevant to the audit, sufficient to
identify and assess the risks of material misstatement and in designing and performing further audit procedures
responsive to those risks.

(CNO-SA402.040) Definition.
Outsourcing: Many entities delegate tasks or even entire business units/functions to service organizations. This
could include specialized tasks like tax compliance function.
User Entity: An entity that uses the services of a service organisation. The financial statements of user entities
are subject to audit.
Service Organisation: A third-party entity that offers specific services to user entities, often integral to the latter's
business operations. These services can be part of the user entities' information systems relevant to financial
reporting. Not all services offered by service organisations are relevant to the audit of the user entity.
User Auditor: An auditor who audits and reports on the financial statements of a user entity.
Service Auditor: An auditor who provides an assurance report on the controls of a service organisation, typically
at SO's request.

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