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

CA Rohini is auditing Sundaram Foods Ltd. She wants to add a statutory reporting section to her report in addition to her responsibilities under the SAs. The additional matters do not address the same topics as the SA-required report elements. How should she present them under SA 700 (Revised)?

She should present them in a separate section headed 'Report on Other Legal and Regulatory Requirements', or another heading suited to the content. Combining with SA-required elements is permitted only where the topics are the same, and here they are not.

  1. AIn a separate section headed 'Report on Other Legal and Regulatory Requirements' or another heading appropriate to its contentCorrect
  2. BWithin the Basis for Opinion section, mixed with the SA-required elements
  3. CIn the Key Audit Matters section, as a matter of most significance
  4. DIn a separate letter to management, because they cannot appear in the auditor's report

Explanation

SA 700 (Revised) requires other reporting responsibilities that are additional to the SAs to be addressed in a separate section. The heading is 'Report on Other Legal and Regulatory Requirements' or another heading appropriate to the content. Combining is allowed only when the other responsibilities address the same topics as the SA-required elements, which is not the case here. The Key Audit Matters section serves a different purpose.

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