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

Kiran Steels Ltd's audit committee asks its auditor to express an opinion on internal control over financial reporting in addition to the opinion on the financial statements. Which statement is correct per SA 700 (Revised)?

An opinion on internal control over financial reporting is an example of an additional reporting responsibility the auditor may be asked to take on. SA 700 (Revised) treats it as supplementary to the auditor's responsibilities under the SAs, not prohibited and not dependent on the financial statements opinion.

  1. ASuch an opinion on specific matters is an example of an additional reporting responsibility the auditor may be asked to undertakeCorrect
  2. BSA 700 (Revised) bars any opinion on internal control over financial reporting
  3. CThe additional opinion must be merged into the financial statements opinion paragraph
  4. DThe additional opinion is required only if the financial statements opinion is adverse

Explanation

SA 700 (Revised) lists expressing an opinion on specific matters, such as internal control over financial reporting, as an example of an additional responsibility supplementary to the SAs. It does not bar it nor require merging with or conditioning on the main opinion.

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