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

While auditing Himalaya Pharma Ltd., the auditor includes in the report both responsibilities required by the SAs and additional statutory reporting responsibilities that address topics different from those in the SA-required report elements. How should the auditor present the additional responsibilities under SA 700 (Revised)?

The auditor should present them in a separate section titled 'Report on Other Legal and Regulatory Requirements' or another heading suited to the content. Merging in the same section is allowed only when the topics are the same as those covered by SA-required report elements, which is not the case here.

  1. AMerge them into the Basis for Opinion section without any differentiation
  2. BPlace them in the Key Audit Matters section
  3. CPresent them in a separate section headed 'Report on Other Legal and Regulatory Requirements' or another heading appropriate to the contentCorrect
  4. DOmit them from the report and communicate them only to those charged with governance

Explanation

Where other reporting responsibilities go beyond the SAs, SA 700 (Revised) requires them to be addressed in a separate section headed 'Report on Other Legal and Regulatory Requirements' or otherwise as appropriate to the content. Combining is allowed only when they address the same topics as the SA-required elements, which is not the case here. Merging them into Basis for Opinion therefore fails the requirement.

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