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

Verma & Associates audit Rudra Foods Ltd. In the audit report on the financial statements, the firm wants to include the reporting required by the Companies Act on matters such as proper books of account, which goes beyond the auditor's responsibilities under the SAs. Where should this be placed under SA 700 (Revised)?

Such additional reporting belongs in a separate section titled 'Report on Other Legal and Regulatory Requirements', or another heading appropriate to its content. SA 700 (Revised) requires this separation when the other responsibilities go beyond the SAs and do not address the same topics as the SA-required elements.

  1. AWithin the Basis for Opinion section, merged with the opinion wording
  2. BIn the Key Audit Matters section
  3. CIn a separate section headed 'Report on Other Legal and Regulatory Requirements' or otherwise as appropriate to its contentCorrect
  4. DIn an Emphasis of Matter paragraph placed before the opinion

Explanation

SA 700 (Revised) requires other reporting responsibilities that are in addition to those under the SAs to be addressed in a separate section, with the heading 'Report on Other Legal and Regulatory Requirements' or another heading suited to the content. Combining them into the opinion or Basis for Opinion would blur the distinction. The exception is when they address the same topics as the SA-required elements.

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