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

Sagar Foods Ltd's financial statements comply individually with both the Accounting Standards under section 133 of the Companies Act, 2013 and with IFRSs. The auditor drafts the opinion paragraph. Which approach is consistent with SA 700 (Revised)?

The auditor should express two opinions, one for each applicable framework, either separately or together in one sentence referring to both the Accounting Standards under section 133 and IFRSs. SA 700 (Revised) treats each framework separately, so neither can be ignored.

  1. AExpress a single opinion referring only to IFRSs and ignore the Accounting Standards
  2. BExpress two opinions, one for each framework, either separately or combined in a single sentence referring to bothCorrect
  3. CExpress an opinion on one framework and state that the other is outside audit scope
  4. DExpress an unmodified opinion on one and an emphasis of matter on the other

Explanation

When the statements comply with each framework individually, two opinions are expressed, one per framework. They may be given separately or in one sentence mentioning both. Ignoring one framework or treating it by emphasis of matter is not what the text provides.

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