Skip to content

CA Final · Advanced Auditing, Assurance and Professional Ethics · Prospective Financial Information and Other Assurance Services

CA Tanvi is engaged to report on compilation of pro forma financial information in the prospectus of Veda Infra Ltd. She concludes that the pro forma information has not been compiled, in all material respects, on the applicable criteria, and a modified opinion is appropriate. Management refuses to make changes. Under the Indian version, SAE 3420, which option is unavailable to her compared with ISAE 3420?

Withholding the report is unavailable. SAE 3420 deleted this option from the ISAE 3420 approach because the practice of withholding reports is not in vogue in India, leaving discussion with the responsible party, withdrawal from the engagement or seeking legal advice.

  1. ADiscussing the matter with the responsible party
  2. BWithholding the reportCorrect
  3. CWithdrawing from the engagement
  4. DConsidering seeking legal advice

Explanation

The SAE 3420 material modifications state that the option of withholding the report, available in ISAE 3420 paragraph 32 and related application paragraphs, has been deleted because withholding a report is not in vogue in India. Discussion with the responsible party, withdrawal and legal advice remain. Hence withholding is the unavailable option.

Did you get it right without looking?

One question tells you little. A timed set on Prospective Financial Information and Other Assurance Services shows your real accuracy, how long you take and where you lose marks.

Practise Prospective Financial Information and Other Assurance ServicesFree diagnostic mock

More Prospective Financial Information and Other Assurance Services questions