Page 44 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Adequacy of the time period: Evaluate the adequacy of the time period covered by the tests of controls and the
time elapsed since their performance.
Relevant to Assertions: Evaluating whether the tests of controls performed by the service auditor and the results
thereof, as described in the service auditor’s report, are relevant to the assertions in the user entity’s financial
statements and provide sufficient appropriate audit evidence to support the user auditor’s risk assessment.

(CNO-SA402.260) Fraud, non-compliance with laws and regulations and uncorrected misstatements in
relation to activities at the service organisation
Inquiry: User auditor inquires management of user entity about fraud, non-compliance with laws, or
uncorrected misstatements affecting financial statements.
Evaluation: Evaluation of how such matters affect the nature, timing, and extent of further audit procedures.
Effect on Audit Report: Effect on user auditor's conclusions and report.

(CNO-SA402.280) Reporting by the user auditor
Unable to obtain sufficient appropriate audit evidence: The user auditor shall modify the opinion in the user
auditor’s
report in accordance with SA 705 if the user auditor is unable to obtain sufficient appropriate audit evidence
regarding the services provided by the service organisation relevant to the audit of the user entity’s financial
statements.
Don’t Refer in Unmodified Opinion: The user auditor shall not refer to the work of a service auditor in the
user auditor’s report containing an unmodified opinion unless required by law or regulation to do so. If such
reference is required by law or regulation, the user auditor’s report shall indicate that the reference does not
diminish the user auditor’s responsibility for the audit opinion.
Refer in Modified Opinion: If reference to the work of a service auditor is relevant to an understanding of a
modification to the user auditor’s opinion, the user auditor’s report shall indicate that such reference does not
diminish the user auditor’s responsibility for that opinion.

NOTE: As per Our past experience Concepts & Questions given in main ICAI Module are extremely important
& there are high chances that whole paper will come from here, so we have restricted only SM based content in
Chapters. Further extra content of SA’s given in Index or where module coverage is not adequate is given at the
end as a separate Chapter. So that students can deal with such content separately with different strategy.

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