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CA Final · Advanced Auditing, Assurance and Professional Ethics · Reporting

The auditor of Himalaya Foods Ltd. includes in the report, besides the SA-required elements, additional responsibilities prescribed by law. These cover topics different from those under the SA-required reporting responsibilities. How should the auditor present them under SA 700 (Revised)?

The additional legal responsibilities should go in a separate section headed 'Report on Other Legal and Regulatory Requirements' or another heading suited to the content. Combining with SA-required elements is permitted only where they address the same topics as those elements.

  1. AMerge them into the Basis for Opinion section without distinction
  2. BPlace them in the Key Audit Matters section
  3. CPresent them in a separate section titled 'Report on Other Legal and Regulatory Requirements' or otherwise as appropriate to its contentCorrect
  4. DOmit them since SA 700 only covers SA responsibilities

Explanation

SA 700 (Revised) requires other reporting responsibilities, in addition to those under the SAs, to be addressed in a separate section headed 'Report on Other Legal and Regulatory Requirements' or as suited to content. Combining is allowed only when the same topics are addressed as under the SA-required responsibilities.

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