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

The auditor of Narmada Foods Ltd. includes in the report both the responsibilities required by the SAs and additional statutory reporting under the Companies Act. The statutory matters address topics different from those in the SA-required report elements. How should the auditor present them under SA 700 (Revised)?

Because the statutory matters address different topics from the SA-required elements, the auditor should present them in a separate section titled 'Report on Other Legal and Regulatory Requirements' or another heading suited to the content, not merge them into other sections.

  1. AOmit them from the report and give them in a separate management letter
  2. BPlace them in a separate section headed 'Report on Other Legal and Regulatory Requirements' or otherwise as appropriate to the contentCorrect
  3. CMerge them into the Basis for Opinion section without differentiation
  4. DPlace them within the Key Audit Matters section

Explanation

Additional reporting responsibilities go in a separate section titled 'Report on Other Legal and Regulatory Requirements' or similar, unless they address the same topics as the SA-required elements. Here the topics differ, so merging them is wrong.

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