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CA Final · Advanced Auditing, Assurance and Professional Ethics · Reporting

An auditor's report on the financial statements of Ganga Infra Ltd contains the Key Audit Matters and the opinion sections as per SAs. The auditor also has to report under the Companies Act on matters such as maintenance of books of account and director disqualification. How should these additional responsibilities be presented under SA 700 (Revised)?

The additional statutory reporting responsibilities should be addressed in a separate section headed 'Report on Other Legal and Regulatory Requirements' or otherwise as appropriate to its content. They may share a section with SA-required elements only if they cover the same topics, and then must be clearly differentiated.

  1. AIn a separate section titled 'Report on Other Legal and Regulatory Requirements' or otherwise as appropriate to its content, unless they address the same topics as the SA-required elementsCorrect
  2. BWithin the Basis for Opinion section, without any differentiation
  3. CIn the Emphasis of Matter paragraph following the opinion
  4. DOnly in a separate management letter, never in the auditor's report

Explanation

SA 700 (Revised) requires other reporting responsibilities beyond the SAs to be in a separate section headed 'Report on Other Legal and Regulatory Requirements' or similar. Only where they address the same topics as SA-required elements may they be in the same section, and then they must be clearly differentiated. Mixing them undifferentiated into Basis for Opinion is wrong.

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