CONDUCTING STATUTORY BR. AUDIT IN CBS ENVIRONMENT….** **REPORTING THE AUDIT *

CONDUCTING STATUTORY BR. AUDIT IN CBS ENVIRONMENT….** **REPORTING THE AUDIT

Finally, having consolidated all the findings, auditors should invest
adequate time in reviewing these findings and should assess the impact of
significant audit findings on opinion. **



Having assessed the impact, if matter affects opinion, auditors should
consider issuing report as per guidance available in SA-700 i.e. qualified,
disclaimer, and adverse.



If it does not affect opinion, auditor should assess whether matter
requires emphasis. Then, audit report without qualifications with suitable
modifications, could be issued. For detailed guidance, auditors should
refer the standard/other available guidance of ICAI.



However, in practical audit situations, auditors may come across of
significant uncertainties, where financial impact of matter emphasized, is
not ascertainable. In such situations, auditors, having obtained the branch
management's written explanations on such matter / estimate of impact,
should examine the managements' explanations and should report
appropriately, e.g. in main report or in LFAR with sufficient details,
apprehending central auditors / senior management to assess the
significance/impact. For instance, dispute on enhanced lease rent, lease
deed of branch premises not got registered and notice from revenue
authorities imposing tax and penalties.

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Splitting the entire auditing process into five consecutive stages stressed
on orderly and coherent execution of audit procedures, minimizing
probabilities of lapses and duplication of work. It sketches a risk-focused
systematic approach to - plan, perform and report- the audit. It would
help managing the time budget, besides documenting the audit
simultaneously, eventually resulting into an quality audit in timely
fashion. Overall, this article could be a starting point for developing an
audit approach and could work as beginners' guide.