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CS Professional · Compliance Management, Audit and Due Diligence · Forming an Opinion and Reporting

Before signing the report on Narmada Pharma Ltd, the auditor concludes whether reasonable assurance has been obtained that the financial statements as a whole are free from material misstatement. Which of the following is one of the three things that the conclusion must take into account under SA 700 (Revised)?

The auditor's conclusion on reasonable assurance must consider whether sufficient appropriate evidence was obtained, whether uncorrected misstatements are material individually or in aggregate, and the evaluations required about framework compliance, policies and disclosures. Dividend policy, audit fees and board meeting counts are not part of this conclusion.

  1. AThe auditor's conclusion on whether uncorrected misstatements are material, individually or in aggregateCorrect
  2. BThe company's dividend policy for the coming year
  3. CThe fee agreed with the company for the audit
  4. DThe number of board meetings held during the year

Explanation

The conclusion takes into account (a) whether sufficient appropriate audit evidence has been obtained, (b) whether uncorrected misstatements are material individually or in aggregate, and (c) the evaluations required by paragraphs 12-15. Dividend policy, audit fees and board meeting count are not among these.

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