The
Auditing and Assurance Standards Board, under the authority of the
Council, has already issued the illustrative formats of the auditor’s
report on standalone financial statements of a company under the
Companies Act 2013 in December 2014. While reporting on the
consolidated financial statements (CFS) of a company under the Companies
Act 2013, the auditors may draw guidance from
the aforementioned
formats and suitably reword the same, as required, to meet the
circumstances of audit of CFS. The auditors of CFS, while reporting in
respect of the provisions of, inter alia, section 143(3) and section
143(11) of the Companies Act, 2013 in their report on CFS, are also
advised to:
consider the observations and comments as given in this regard in the auditors’ reports of the component auditors.
include
in their report or draw suitable reference to, negative/adverse
comments, if any, in respect of section 143(3) and section 143(11) of
the Act relating to a component, as appearing in the component auditors’
report.
The
auditors of CFS are also advised to apply concept of materiality and
professional judgment as provided in the Standards on Audit while
reporting on the Consolidated Financial Statements.
The
following illustrative formats of an auditors’ report on CFS, covering
some of the clauses of section 143(3) of the Companies Act, 2013 (and
where the auditor does not have the responsibility for reporting on
internal financial controls over financial reporting under section
143(3)(i) of the Companies Act,ñ 2013), are being issued herewith just
to provide a broad guidance on how such a report may be prepared. These
formats may be applied for the FY 2014-15 and until further
announcement. It is reiterated that the auditors of CFS may suitably
reword/redraft these formats to suit the circumstances of their audit
engagement.
Type of Format
Unmodified opinion on the consolidated financial statements
This format will be added in the Appendix to SA 700
Modified opinion on the consolidated financial statements
This format will be added in the Appendix to SA 705
- CFS Audit Report - CLEAN OPINION-01 May'15.docx
- CFS Audit Report - QUALIFIED OPINION-01 May'15.docx
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