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

Kaveri Pharma Ltd, an Indian company, prepares one set of financial statements that complies individually with both the Accounting Standards prescribed under section 133 of the Companies Act, 2013 and IFRSs. How should the auditor frame the opinion under SA 700 (Revised)?

The auditor expresses two opinions, one for each framework. They may be stated separately or combined in a single sentence referring to the section 133 Accounting Standards and to IFRSs, because each framework is considered separately when forming the opinion.

  1. AExpress an opinion only on IFRSs, since it is the global framework
  2. BExpress two opinions, one for each framework, separately or in a single sentenceCorrect
  3. CExpress an opinion on the section 133 standards and leave IFRSs to an Other Matter paragraph
  4. DExpress a single opinion that avoids naming either framework

Explanation

When statements comply with each of two applicable frameworks individually, each framework is considered separately. Two opinions are expressed, and they may be given separately or in one sentence naming both frameworks. Dropping one framework or moving it to an Other Matter paragraph is not what SA 700 provides.

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