Page 233 - CA Inter Audit PARAM

CA Ravi Taori
Signature
Place
Date

QNO Introductory Paragraph of Audit Report Old Course – (M21E)
700.09.50 Bhaskar CNO - SA700.040
While drafting report of LK Ltd, what are the matter to be included by auditor in introductory paragraph?

Answer The first section of the auditor’s report shall include the auditor’s opinion and shall have the heading
“Opinion.”

The Opinion section of the auditor’s report shall also:
(a) State that the financial statements have been audited;
(b) Identify the entity whose financial statements have been audited;
(c) Identify the title of each statement comprising the financial statements;
(d) Refer to the notes, including the summary of significant accounting policies; and
(e) Specify the date of, or period covered by, each financial statement comprising the financial
statements.

QNO Opinion section of the auditor’s report Old Course—(S20M/S21M/M20R/N22R)
700.10 Bhaskar CNO - SA700.040
The first section of the auditor’s report shall include the auditor’s opinion, and shall have the heading
“Opinion.” The Opinion section of the auditor’s report shall also Identify the entity whose financial

statements have been audited. Apart from the above, explain the other relevant points to be included in
opinion section.
Answer ➢ The first section of the auditor’s report shall include the auditor’s opinion, and shall have the heading
“Opinion.
The Opinion section of the auditor’s report shall also:
• Identify the entity whose financial statements have been audited;
• State that the financial statements have been audited;
• Identify the title of each statement comprising the financial statements;
• Refer to the notes, including the summary of significant accounting policies; and
• Specify the date of, or period covered by, each financial statement comprising the
financial statements.

QNO-- Correct Phrases For Opinion New Course – (S24E)
700.10.50 Bhaskar CNO – SA700.040

CA Ayush has recently qualified and has joined a CA Firm. On going through various audit reports, he
observed that different phrases were used to express an unmodified opinion on the financial statements.
On enquiring with a senior, he got to know that all those phrases can be regarded as being equivalent.
Which phrases are appropriate and which phrases are inappropriate while drafting an unmodified
opinion?
Answer Appropriate and Inappropriate Phrases while drafting an Unmodified Opinion: When expressing an
unmodified opinion on financial statements, the auditor’s opinion shall, unless otherwise required by law
or regulation, use one of the following phrases, which are regarded as being equivalent:

(i) In our opinion, the accompanying financial statements present fairly, in all material respects,
[…] in accordance with [the applicable financial reporting framework]; or

(ii) In our opinion, the accompanying financial statements give a true and fair view of […] in
accordance with [the applicable financial reporting framework].

The phrases “present fairly, in all material respects,” and “give a true and fair view” are regarded as being
equivalent.

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