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

Meghdoot Pharma Ltd's auditor is engaged to perform additional specified procedures and report the findings, over and above the audit of the financial statements. Where should the auditor look for guidance on these specific additional reporting responsibilities, according to SA 700 (Revised)?

The auditor should refer to Standards on Auditing and/or other relevant ICAI pronouncements, which often provide guidance on specific additional reporting responsibilities. SA 700 (Revised) points to these sources, not to management instructions or the entity's constitutional documents, for such supplementary reporting.

  1. AOnly in the entity's articles of association
  2. BIn Standards on Auditing and/or other relevant pronouncements of the ICAI, which often provide such guidanceCorrect
  3. CIn the management's own instructions, which override all standards
  4. DNowhere, as no guidance exists for additional reporting

Explanation

SA 700 (Revised) states that Standards on Auditing and/or other relevant pronouncements of the ICAI often provide guidance on the auditor's responsibilities for specific additional reporting. Management instructions or articles are not the stated source.

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