A32. The auditor’s knowledge obtained in the audit may also include matters that are prospective in nature. Such matters may include, for example, business prospects and future cash flows that the auditor considered when evaluating the assumptions used by management in performing impairment tests on intangible assets such as goodwill, or when evaluating management’s assessment of the entity’s ability to continue as a going concern.
A33. In considering whether there is a material inconsistency between the other information and the auditor’s knowledge obtained in the audit, the auditor may focus on those matters in the other information that are of sufficient importance that a misstatement of the other information in relation to that matter could be material.
A34. In relation to many matters in the other information, the auditor’s recollection of the audit evidence obtained and conclusions reached in the audit may be sufficient to enable the auditor to consider whether there is a material inconsistency between the other information and the auditor’s knowledge obtained in the audit. The more experienced and the more familiar with the key aspects of the audit the auditor is, the more likely it is that the auditor’s 12 SA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, paragraphs 11–12. recollection of relevant matters will be sufficient. For example, the auditor may be able to consider whether there is a material inconsistency between the other information and the auditor’s knowledge obtained in the audit in light of the auditor’s recollection of discussions held with management or those charged with governance or findings from procedures carried out during the audit such as the reading of board minutes, without the need to take further action.
A35. The auditor may determine that referring to relevant audit documentation or making inquiries of relevant members of the engagement team or relevant component auditors is appropriate as a basis for the auditor’s consideration of whether a material inconsistency exists. For example: When the other information describes the planned cessation of a major product line and, although the auditor is aware of the planned cessation, the auditor may make inquiries of the relevant engagement team member who performed the audit procedures in this area to support the auditor’s consideration of whether the description is materially inconsistent with the auditor’s knowledge obtained during the audit.
When the other information describes important details of a lawsuit
addressed in the audit, but the auditor cannot recall them adequately, it may be necessary to refer to the audit documentation where such details are summarized to support the auditor’s recollection.
A36. Whether, and if so the extent to which, the auditor refers to relevant audit documentation, or makes inquiries of relevant members of the engagement team or relevant component auditors is a matter of professional judgment. However, it may not be necessary for the auditor to refer to relevant audit documentation, or to make inquiries of relevant members of the engagement team or relevant component auditors about any matter included in the other information. The group auditor may request the management of thegroup to require the concerned component auditor to validate that part of the other information included in the annual report of the group that relates to the respective component. Remaining Alert for Other Indications that the Other Information Appears to
Be Materially Misstated (Ref: Para. 15)
A37. Other information may include discussion of matters that are not related to the financial statements and may also extend beyond the auditor’s knowledge obtained in the audit. For example, the other information may include statements about the entity’s greenhouse gas emissions.
A38. Remaining alert for other indications that the other information not related to the financial statements or the auditor’s knowledge obtained in the audit appears to be materially misstated assists the auditor in complying with relevant ethical requirements that require the auditor to avoid being associated with other information that the auditor believes contains a materially false or misleading statement, a statement furnished negligently, or omits or obscures any necessary information such that the other information is misleading
13. Remaining alert for other indications that the other information appears to be materially misstated could potentially result in the auditor identifying such matters as: Differences between the other information and the general knowledge, apart from the knowledge obtained in the audit, of the engagement team member reading the other information that lead the auditor to believe that the other information appears to be materially misstated; or An internal inconsistency in the other information that leads the auditor to believe that the other information appears to be materially misstated.
Responding When a Material Inconsistency Appears to Exist or
Other Information Appears to Be Materially Misstated (Ref: Para. 16)
A39. The auditor’s discussion with management about a material inconsistency (or other information that appears to be materially misstated) may include requesting management to provide support for the basis of management’s statements in the other information. Based on management’s further information or explanations, the auditor may be satisfied that the other information is not materially misstated. For example, management explanations may indicate reasonable and sufficient grounds for valid differences of judgment.
A40. Conversely, the discussion with management may provide further information that supports the auditor’s conclusion that a material misstatement of the other information exists.
A41. It may be more difficult for the auditor to challenge management on matters of judgment than on those of a more factual nature. However, there may be circumstances where the auditor concludes that the other information contains a statement that is not consistent with the financial statements or the auditor’s knowledge obtained in the audit. These circumstances may raise doubt about the other information, the financial statements, or the auditor’s knowledge obtained in the audit.
A42. As there is a wide range of possible material misstatements of the other information, the nature and extent of other procedures the auditor may perform to conclude whether a material misstatement of the other information exists are matters of the auditor’s professional judgment in the circumstances. 13 ICAI’s Code of Ethics, paragraph 110.2.
A43. When a matter is unrelated to the financial statements or the auditor’s knowledge obtained in the audit, the auditor may not be able to fully assess management’s responses to the auditor’s inquiries. Nevertheless, based on management’s further information or explanations, or following changes made by management to the other information, the auditor may be satisfied that a material inconsistency no longer appears to exist or that the other information no longer appears to be materially misstated. When the auditor is unable to conclude that a material inconsistency no longer appears to exist or that the other information no longer appears to be materially misstated, the auditor may request management to consult with a qualified third party (for example, a management’s expert or legal counsel). In certain cases, after considering the responses from management’s consultation, the auditor may not be able to conclude whether or not a material misstatement of the other information exists. Actions the auditor may then take include one or more of the following: Obtaining advice from the auditor’s legal counsel; Considering the implications for the auditor’s report for example, whether to describe the circumstances when there is a limitation imposed by management; or Withdrawing from the audit, where withdrawal is possible under applicable law or regulation.
Responding When the Auditor Concludes That a Material
Misstatement of the Other Information Exists
Responding When the Auditor Concludes That a Material Misstatement
Exists in Other Information Obtained prior to the Date of the Auditor’s
A44. The actions the auditor takes if the other information is not corrected after communicating with those charged with governance are a matter of the auditor’s professional judgment. The auditor may take into account whether the rationale given by management and those charged with governance for not making the correction raises doubt about the integrity or honesty of management or those charged with governance, such as when the auditor suspects an intention to mislead. The auditor may also consider it appropriate to seek legal advice. In some cases, the auditor may be required by law, regulation or the professional standards to communicate the matter to a regulator.
Reporting Implications (Ref: Para. 18(a))
A45. In rare circumstances, a disclaimer of opinion on the financial statements may be appropriate when the refusal to correct the material misstatement of the other information casts such doubt on the integrity of management and those charged with governance as to call into question the reliability of audit evidence in general.
Withdrawal from the Engagement (Ref: Para. 18(b))
A46. Withdrawal from the engagement, where withdrawal is possible under applicable law or regulation, may be appropriate when the circumstances surrounding the refusal to correct the material misstatement of the other information cast such doubt on the integrity of management and those charged with governance as to call into question the reliability of representations obtained from them during the audit.
Considerations specific to certain entities (Ref: Para. 18(b))
A47. In case of certain entities, such as Central/State government and related government entities (for example agencies, board, commissions), withdrawal from the engagement may not be possible. In such cases, the auditor may issue a report to the legislature providing details of the matter or may take other appropriate actions.
Responding When the Auditor Concludes That a Material Misstatement
Exists in Other Information Obtained after the Date of the Auditor’s Report (Ref: Para. 19)
A48. If the auditor concludes that a material misstatement exists in other information obtained after the date of the auditor’s report, and such a material misstatement has been corrected, the auditor’s procedures necessary in the circumstances include determining that the correction has been made (in accordance with paragraph 17(a)) and may include reviewing the steps taken by management to communicate with those in receipt of the other information, if previously issued, to inform them of the revision.
A49. If those charged with governance do not agree to revise the other information, taking appropriate action to seek to have the uncorrected misstatement appropriately brought to the attention of users for whom the auditor’s report is prepared requires the exercise of professional judgment, and may be affected by relevant law or regulation. Accordingly, the auditor may consider it appropriate to seek legal advice about the auditor’s legal rights and obligations.
A50. When a material misstatement of the other information remains uncorrected, appropriate actions that the auditor may take to seek to have the uncorrected material misstatement appropriately brought to the attention of users for whom the auditor’s report is prepared, when permitted by law or regulation, include, for example: Providing a new or amended auditor’s report to management including a modified section in accordance with paragraph 22, and requesting management to provide this new or amended auditor’s report to users for whom the auditor’s report is prepared. In doing so, the auditor may need to consider the effect, if any, on the date of the new or amended auditor’s report, in view of the requirements of the SAs or applicable law or regulation. The auditor may also review the steps taken by management to provide the new or amended auditor’s report to such users; Bringing the material misstatement of the other information to the attention of the appointing authority (for example, by addressing the matter in a general meeting of shareholders);
Communicating with the regulator where required by applicable law or
regulation about the uncorrected material misstatement; or
Considering the implications for engagement continuance (see also
Responding When a Material Misstatement in the Financial
Statements Exists or the Auditor’s Understanding of the Entity and
Its Environment Needs to Be Updated (Ref: Para. 20)
A51. In reading the other information, the auditor may become aware of new information that has implications for: The auditor’s understanding of the entity and its environment and, accordingly, may indicate the need to revise the auditor’s risk assessment. 14 The auditor’s responsibility to evaluate the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements. 15 The auditor’s responsibilities relating to subsequent events. 16
Reporting (Ref: Para. 21–24)
A52. For an audit of financial statements of an unlisted corporate entity, the auditor may consider that the identification in the auditor’s report of other 14 SA 315, paragraphs 11, 31 and A1. 15 SA 450, Evaluation of Misstatements Identified during the Audit. 16 SA 560, paragraphs 10 and 14. information that the auditor expects to obtain after the date of the auditor’s report would be appropriate in order to provide additional transparency about the other information that is subject to the auditor’s responsibilities under this SA. The auditor may consider it appropriate to do so, for example, when management is able to represent to the auditor that such other information will be issued after the date of the auditor’s report.
Illustrative Statements (Ref: Para. 21–22)
A53. Illustrative examples of the “Other Information” section of the auditor's report are included in Appendix 2.
Reporting Implications When the Auditor’s Opinion on the Financial
Statements is Qualified or Adverse (Ref: Para. 23)
A54. A qualified or adverse auditor’s opinion on the financial statements may not have an impact on the statement required by paragraph 22(e) if the matter in respect of which the auditor’s opinion has been modified is not included or otherwise addressed in the other information and the matter does not affect any part of the other information. For example, a qualified opinion on the financial statements because of non-disclosure of directors’ remuneration as required by the applicable financial reporting framework may have no implications for the reporting required under this SA. In other circumstances, there may be implications for such reporting as described in paragraphs A55–A58. Qualified Opinion Due to a Material Misstatement in the Financial Statements
A55. In circumstances when the auditor’s opinion is qualified, consideration may be given as to whether the other information is also materially misstated for the same matter as, or a related matter to, the matter giving rise to the qualified opinion on the financial statements.
Qualified Opinion Due to Limitation of Scope
A56. When there is a limitation of scope with respect to a material item in the financial statements, the auditor will not have obtained sufficient appropriate audit evidence about that matter. In these circumstances, the auditor may be unable to conclude whether or not the amounts or other items in the other information related to this matter result in a material misstatement of the other information. Accordingly, the auditor may need to modify the statement required by paragraph 22(e) to refer to the auditor’s inability to consider management’s description of the matter in the other information in respect of which the auditor’s opinion on the financial statements has been qualified as explained in the Basis for Qualified Opinion paragraph. The auditor is nevertheless required to report any other uncorrected material misstatements of the other information that have been identified.
A57. An adverse opinion on the financial statements relating to a specific matter(s) described in the Basis for Adverse Opinion paragraph does not justify the omission of reporting of material misstatements of the other information that the auditor has identified in the auditor’s report in accordance with paragraph 22(e)(ii). When an adverse opinion has been expressed on the financial statements, the auditor may need to appropriately modify the statement required by paragraph 22(e) for example, to indicate that amounts or items in the other information is materially misstated for the same matter as, or a related matter to, the matter giving rise to the adverse opinion on the financial statements.
A58. When the auditor disclaims an opinion on the financial statements, providing further details about the audit, including a section to address other information may overshadow the disclaimer of opinion on the financial statements as a whole. Accordingly, in those circumstances, as required by SA 705 (Revised), the auditor’s report does not include a section addressing the reporting requirements under this SA.
Reporting Prescribed by Law or Regulation (Ref: Para. 24)
A59. SA 200 17 explains that the auditor may be required to comply with legal or regulatory requirements in addition to the SAs. Where this is the case, the auditor may be obliged to use a specific layout or wording in the auditor’s report that differs from that described in this SA. Consistency in the auditor’s report, when the audit has been conducted in accordance with SAs, promotes credibility in the global marketplace by making more readily identifiable those audits that have been conducted in accordance with globally recognized standards. When the differences between the legal or regulatory requirements to report with respect to the other information and this SA relate only to the layout and wording in the auditor’s report and, at a minimum, each of the elements identified in paragraph 24 is included in the auditor’s report, the auditor’s report may refer to Standards on Auditing. Accordingly, in such circumstances the auditor is considered to have complied with the requirements of this SA, even when the layout and wording used in the auditor’s report are specified by legal or regulatory reporting requirements. 17 SA 200, paragraph A56.
Material Modifications vis-à-vis ISA 720(Revised), “The
Auditor’s Responsibilities Relating to Other Information”
Paragraphs 21 and 22 of ISA 720(Revised) deal with reporting requirements on other information for listed entities and unlisted entities. In case of unlisted entities, Paragraph 21(b) of ISA 720(Revised) requires reporting on other information in situations where the auditor has obtained some or all of the other information at the date of the auditor’s report. In India, there are large number of unlisted entities both corporates and non- corporates. Most of the unlisted non-corporate entities in India may not be required to issue annual reports containing other information under the applicable laws or regulations and some of these may issue annual reports as per custom or practice in relevant industry/sector. In the absence of legal and regulatory requirements regarding annual reports, there are practical difficulties for auditors to get any other information till the date of auditor’s report in case of unlisted non-corporates entities. Due to this reason, auditors would not be in a position to report on other information in case of unlisted non-corporate entities. To deal with aforesaid situation, Paragraph 21(b) of SA 720(Revised) has been modified to require reporting on other information in case of unlisted corporate entities only. Necessary change has also been made in paragraph A52 of SA 720(Revised).
Accordingly, the reporting requirements in SA 720(Revised) will not be
applicable in case of unlisted non-corporate entities. However, it is clarified that all the other requirements in SA 720(Revised) will be equally applicable to audits of all unlisted entities.
Examples of Amounts or Other Items that May Be Included
in the Other Information The following are examples of amounts and other items that may be included in other information. This list is not intended to be exhaustive.
Items in a summary of key financial results, such as net income, earnings per share, dividends, sales and other operating revenues, and purchases and operating expenses.
Selected operating data, such as income from continuing operations by
major operating area, or sales by geographical segment or product line. Special items, such as asset dispositions, litigation provisions, asset impairments, tax adjustments, environmental remediation provisions, and restructuring and reorganization expenses. Liquidity and capital resource information, such as cash, cash equivalents and marketable securities; dividends; and debt, capital lease and minority interest obligations. Capital expenditures by segment or division. Amounts involved in, and related financial effects of, off-balance sheet arrangements.
Amounts involved in guarantees, contractual obligations, legal or
environmental claims, and other contingencies. Financial measures or ratios, such as gross margin, return on average capital employed, return on average shareholders’ equity, current ratio, interest coverage ratio and debt ratio. Some of these may be directly reconcilable to the financial statements.
Explanations of critical accounting estimates and related assumptions. Identification of related parties and descriptions of transactions with them. Articulation of the entity’s policies or approach to manage commodity, foreign exchange or interest rate risks, such as through the use of forward contracts, interest rate swaps, or other financial instruments. Descriptions of the nature of off-balance sheet arrangements. Descriptions of guarantees, indemnifications, contractual obligations, litigation or environmental liability cases, and other contingencies, including management’s qualitative assessments of the entity’s related exposures. Descriptions of changes in legal or regulatory requirements, such as new tax or environmental regulations, that have materially impacted the entity’s operations or fiscal position, or will have a material impact on the entity’s future financial prospects.
Management’s qualitative assessments of the impacts of new financial
reporting standards that have come into effect during the period, or will come into effect in the following period, on the entity’s financial results, financial position and cash flows. General descriptions of the business environment and outlook. Overview of strategy. Descriptions of trends in market prices of key commodities or raw materials.
Contrasts of supply, demand and regulatory circumstances between
geographic regions. Explanations of specific factors influencing the entity’s profitability in specific segments.
Illustrations of Auditor’s Reports Relating to Other Information
Illustration 1: An auditor’s report of a company, whether listed or unlisted, containing an unmodified opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and has not identified a material misstatement of the other information. Illustration 2: An auditor’s report of a listed company containing an unmodified opinion when the auditor has obtained part of the other information prior to the date of the auditor’s report, has not identified a material misstatement of the other information, and expects to obtain other information after the date of the auditor’s report. Illustration 3: An auditor’s report of an unlisted company containing an unmodified opinion when the auditor has obtained part of the other information prior to the date of the auditor’s report, has not identified a material misstatement of the other information, and expects to obtain other information after the date of the auditor’s report. Illustration 4: An auditor’s report of a listed company containing an unmodified opinion when the auditor has obtained no other information prior to the date of the auditor’s report but expects to obtain other information after the date of the auditor’s report. Illustration 5: An auditor’s report of a company, whether listed or unlisted, containing an unmodified opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and has concluded that a material misstatement of the other information exists. Illustration 6: An auditor’s report of a company, whether listed or unlisted, containing a qualified opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and there is a limitation of scope with respect to a material item in the consolidated financial statements which also affects the other information. Illustration 7: An auditor’s report of a company, whether listed or unlisted, containing an adverse opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and the adverse opinion on the consolidated financial statements also affects the other information. Illustration 1 – An auditor’s report of a company, whether listed or unlisted, containing an unmodified opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and has not identified a material misstatement of the other information. For purposes of this illustrative auditor’s report, the following circumstances are assumed: Audit of a complete set of financial statements of a company, whether listed or unlisted (registered under the Companies Act, 2013) using a fair presentation framework. The audit is not a group audit (i.e., SA 60018 does not apply). The financial statements are prepared by management of the company in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013. The terms of the audit engagement reflect the description of management’s responsibility for the financial statements in SA 210.
The auditor has concluded an unmodified (i.e., “clean”) opinion is
appropriate based on the audit evidence obtained. The relevant ethical requirements that apply to the audit comprise the Code of Ethics issued by ICAI together with the other relevant ethical requirements relating to the audit and the auditor refers to both. Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does not exist related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern in accordance with SA 570(Revised).19 Key audit matters have been communicated in accordance with SA 701.20 The auditor has obtained all of the other information prior to the date of the auditor's report and has not identified a material misstatement of the other information. Those responsible for oversight of the financial statements differ from those responsible for the preparation of the financial statements. In addition to the audit of the financial statements, the auditor has other reporting responsibilities required under the Companies Act, 2013. 18 SA 600, Using the Work of Another Auditor. 19 SA 570 (Revised), Going Concern. 20 SA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. The Key Audit Matters section is required for listed entities only.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of ABC Company Limited (“the Company”), which comprise the balance sheet as at 31st March 20XX, and the statement of profit and loss, (statement of changes in equity) 21 and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information [in which are included the returns for the year ended on that date audited by the branch auditors of the company’s branches located at (location of branches)]
22. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 20XX, and its profit/loss, (changes in equity)23 and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 21 Where applicable. 22 Where applicable. 23 Where applicable.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. [Description of each key audit matter in accordance with SA 701.] Other Information [or another title if appropriate, such as “Information
Other than the Financial Statements and Auditor’s Report Thereon”]
The Company’s Board of Directors is responsible for the other information. The other information comprises the [information included in the X report,25 but does not include the financial statements and our auditor’s report thereon.] Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for
the Financial Statements [Reporting in accordance with SA 700 (Revised)26–see Illustration 1 in SA 700 (Revised).]
Auditor’s Responsibilities for the Audit of the Financial Statements
[Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).] 24 The Key Audit Matters section is required for listed entities only. 25 A more specific description of the other information, such as “the management report and chairman’s statement,” may be used to identify the other information. 26 SA 700 (Revised), Forming an Opinion and Reporting on Financial Statements.
We did not audit the financial statements/information of ________(number) branches included in the standalone financial statements of the Company whose financial statements / financial information reflect total assets of Rs.______ as at 31st March, 20XX and total revenues of Rs._______ for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).] While reporting under Section 143(3) of the Companies Act, 2013, the auditor is required to suitably reword the wordings given in the Illustration in SA 700(Revised) to meet the circumstances of the audit.
(Firm’s Registration No.)
(Name of the Member Signing the Audit Report) (Designation28) (Membership No.) Place of Signature: Date: 27 Where applicable. 28 Partner or Proprietor, as the case may be. Illustration 2 – An auditor’s report of a listed company containing an unmodified opinion when the auditor has obtained part of the other information prior to the date of the auditor’s report, has not identified a material misstatement of the other information, and expects to obtain other information after the date of the auditor’s report. For purposes of this illustrative auditor’s report, the following circumstances are assumed: Audit of a complete set of financial statements of a listed company (registered under the Companies Act, 2013) using a fair presentation framework. The audit is not a group audit (i.e., SA 600 does not apply). The financial statements are prepared by management of the company in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act 2013. The terms of the audit engagement reflect the description of management’s responsibility for the financial statements in SA 210.
The auditor has concluded an unmodified (i.e., “clean”) opinion is
appropriate based on the audit evidence obtained. The relevant ethical requirements that apply to the audit comprise the Code of Ethics issued by ICAI together with the other relevant ethical requirements relating to the audit and the auditor refers to both. Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does not exist related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern in accordance with SA 570 (Revised). Key audit matters have been communicated in accordance with SA 701. The auditor has obtained part of the other information prior to the date of the auditor’s report, has not identified a material misstatement of the other information, and expects to obtain other information after the date of the auditor’s report. Those responsible for oversight of the financial statements differ from those responsible for the preparation of the financial statements. In addition to the audit of the financial statements, the auditor has other reporting responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of ABC Company Limited (“the Company”), which comprise the balance sheet as at 31st March 20XX, and the statement of profit and loss, (statement of changes in equity)29 and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information [in which are included the returns for the year ended on that date audited by the branch auditors of the company’s branches located at (location of branches)]30. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 20XX, and its profit/loss, (changes in equity)31 and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 29 Where applicable. 30 Where applicable. 31 Where applicable.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. [Description of each key audit matter in accordance with SA 701.] Other Information [or another title if appropriate, such as “Information
Other than the Financial Statements and Auditor’s Report Thereon”]
The Company’s Board of Directors is responsible for the other information. The other information comprises the X report32 (but does not include the financial statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report, and the Y report, which is expected to be made available to us after that date. Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. [When we read the Y report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and [describe actions applicable under the applicable laws and regulations]]33
Responsibilities of Management and Those Charged with Governance for
the Financial Statements [Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).] 32 A more specific description of the other information, such as “the management report and chairman’s statement,” may be used to identify the other information. 33 This additional paragraph may be useful when the auditor has identified an uncorrected material misstatement of the other information obtained after the date of the auditor's report and has a legal obligation to take specific action in response.
Auditor’s Responsibilities for the Audit of the Financial Statements
[Reporting in accordance with SA 700 (Revised) – see Illustration 1 in SA 700 (Revised).]
We did not audit the financial statements/information of ________(number) branches included in the standalone financial statements of the Company whose financial statements / financial information reflect total assets of Rs.______ as at 31st March, 20XX and total revenues of Rs._______ for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
[Reporting in accordance with SA 700 (Revised) – see Illustration 1 in SA 700 (Revised).] While reporting under Section 143(3) of the Companies Act, 2013, the auditor is required to suitably reword the wordings given in the Illustration in SA 700(Revised) to meet the circumstances of the audit.
(Firm’s Registration No.)
(Name of the Member Signing the Audit Report) (Designation35) (Membership No.) Place of Signature: Date: 34 Where applicable. 35 Partner or Proprietor, as the case may be. Illustration 3 – An auditor’s report of an unlisted company containing an unmodified opinion when the auditor has obtained part of the other information prior to the date of the auditor’s report, has not identified a material misstatement of the other information, and expects to obtain other information after the date of the auditor’s report. For purposes of this illustrative auditor’s report, the following circumstances are assumed: Audit of a complete set of financial statements of an unlisted company (registered under the Companies Act, 2013) using a fair presentation framework. The audit is not a group audit (i.e., SA 600 does not apply). The financial statements are prepared by management of the company in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act 2013. The terms of the audit engagement reflect the description of management’s responsibility for the financial statements in SA 210.
The auditor has concluded an unmodified (i.e., “clean”) opinion is
appropriate based on the audit evidence obtained. The relevant ethical requirements that apply to the audit comprise the Code of Ethics issued by ICAI together with the other relevant ethical requirements relating to the audit and the auditor refers to both. Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does not exist related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern in accordance with SA 570 (Revised). The auditor is not required, and has otherwise not decided, to communicate key audit matters in accordance with SA 701. The auditor has obtained part of the other information prior to the date of the auditor’s report, has not identified a material misstatement of the other information, and expects to obtain other information after the date of the auditor’s report. Those responsible for oversight of the financial statements differ from those responsible for the preparation of the financial statements. In addition to the audit of the financial statements, the auditor has other reporting responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of ABC Company Limited (“the Company”), which comprise the balance sheet as at 31st March 20XX, and the statement of profit and loss, (statement of changes in equity)36 and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information [in which are included the returns for the year ended on that date audited by the branch auditors of the company’s branches located at (location of branches)]37. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 20XX, and its profit/loss, (changes in equity)38 and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 36 Where applicable. 37 Where applicable. 38 Where applicable. Other Information [or another title if appropriate, such as “Information
Other than the Financial Statements and Auditor’s Report Thereon”]
The Company’s Board of Directors is responsible for the other information. The other information obtained at the date of this auditor’s report is [information included in the X report,39 but does not include the financial statements and our auditor’s report thereon] Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for
the Financial Statements [Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).]
Auditor’s Responsibilities for the Audit of the Financial Statements
[Reporting in accordance with SA 700 (Revised) – see Illustration 1 in SA 700 (Revised).]
We did not audit the financial statements/information of ________(number) branches included in the standalone financial statements of the Company whose financial statements / financial information reflect total assets of Rs.______ as at 31st March, 20XX and total revenues of Rs._______ for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of these branches have been audited by the branch 39 A more specific description of the other information, such as “the management report and chairman’s statement,” may be used to identify the other information. 40 Where applicable. auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
[Reporting in accordance with SA 700 (Revised) – see Illustration 1 in SA 700 (Revised).] While reporting under Section 143(3) of the Companies Act, 2013, the auditor is required to suitably reword the wordings given in the Illustration in SA 700(Revised) to meet the circumstances of the audit.
(Firm’s Registration No.)
(Name of the Member Signing the Audit Report) (Designation41) (Membership No.) Place of Signature: Date: 41 Partner or Proprietor, as the case may be. Illustration 4 – An auditor’s report of a listed company containing an unmodified opinion when the auditor has obtained no other information prior to the date of the auditor’s report but expects to obtain other information after the date of the auditor’s report. For purposes of this illustrative auditor’s report, the following circumstances are assumed: • Audit of a complete set of financial statements of a listed company (registered under the Companies Act, 2013) using a fair presentation framework. The audit is not a group audit (i.e., SA 600 does not apply). • The financial statements are prepared by management of the company in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013. • The terms of the audit engagement reflect the description of management’s responsibility for the financial statements in SA 210. •
The auditor has concluded an unmodified (i.e., “clean”) opinion is
appropriate based on the audit evidence obtained. • The relevant ethical requirements that apply to the audit comprise the Code of Ethics issued by ICAI together with the other relevant ethical requirements relating to the audit and the auditor refers to both. • Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does not exist related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern in accordance with SA 570 (Revised). • Key audit matters have been communicated in accordance with SA 701. • The auditor has obtained no other information prior to the date of the auditor’s report but expects to obtain other information after the date of the auditor’s report. • Those responsible for oversight of the financial statements differ from those responsible for the preparation of the financial statements. • In addition to the audit of the financial statements, the auditor has other reporting responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of ABC Company Limited (“the Company”), which comprise the balance sheet as at 31st March 20XX, and the statement of profit and loss, (statement of changes in equity)42 and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information [in which are included the returns for the year ended on that date audited by the branch auditors of the Company’s branches located at (location of branches)]43. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 20XX, and its profit/loss, (changes in equity)44 and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of 42 Where applicable. 43 Where applicable. 44 Where applicable. most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. [Description of each key audit matter in accordance with SA 701.] Other Information [or another title if appropriate, such as “Information
Other than the Financial Statements and Auditor’s Report Thereon”]
The Company’s Board of Directors is responsible for the other information. The other information comprises the [information included in the X report45, but does not include the financial statements and our auditor’s report thereon]. The X report is expected to be made available to us after the date of this auditor's report. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. [When we read the X report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and(describe actions applicable in the applicable laws and regulations).]46
Responsibilities of Management and Those Charged with Governance for
the Financial Statements [Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).]
Auditor’s Responsibilities for the Audit of the Financial Statements
[Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).] 45 A more specific description of the other information, such as “the management report and chairman’s statement,” may be used to identify the other information. 46 This additional paragraph may be useful when the auditor has identified an uncorrected material misstatement of the other information obtained after the date of the auditor's report and has a legal obligation to take specific action in response.
We did not audit the financial statements/information of ________(number) branches included in the standalone financial statements of the Company whose financial statements / financial information reflect total assets of Rs.______ as at 31st March, 20XX and total revenues of Rs._______ for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
[Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).] While reporting under Section 143(3) of the Companies Act, 2013, the auditor is required to suitably reword the wordings given in the Illustration in SA 700(Revised) to meet the circumstances of the audit.
(Firm’s Registration No.)
(Name of the Member Signing the Audit Report) (Designation48) (Membership No.) Place of Signature: Date: 47 Where applicable. 48 Partner or Proprietor, as the case may be. Illustration 5 – An auditor’s report of a company, whether listed or unlisted, containing an unmodified opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and has concluded that a material misstatement of the other information exists. For purposes of this illustrative auditor’s report, the following circumstances are assumed: Audit of a complete set of financial statements of a company, whether listed or unlisted (registered under the Companies Act, 2013) using a fair presentation framework. The audit is not a group audit (i.e., SA 600 does not apply). The financial statements are prepared by management of the company in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013. The terms of the audit engagement reflect the description of management’s responsibility for the financial statements in SA 210.
The auditor has concluded an unmodified (i.e., “clean”) opinion is
appropriate based on the audit evidence obtained. The relevant ethical requirements that apply to the audit comprise the Code of Ethics issued by ICAI together with the other relevant ethical requirements relating to the audit and the auditor refers to both. Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does not exist related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern in accordance with SA 570 (Revised). Key audit matters have been communicated in accordance with SA 701. The auditor has obtained all of the other information prior to the date of the auditor's report and has concluded that a material misstatement of the other information exists Those responsible for oversight of the financial statements differ from those responsible for the preparation of the financial statements. In addition to the audit of the financial statements, the auditor has other reporting responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of ABC Company Limited (“the Company”), which comprise the balance sheet as at 31st March 20XX, and the statement of profit and loss, (statement of changes in equity)49 and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information [in which are included the returns for the year ended on that date audited by the branch auditors of the Company’s branches located at (location of branches)]
50. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 20XX, and its profit/loss, (changes in equity)51 and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information [or another title if appropriate, such as “Information
Other than the Financial Statements and Auditor’s Report Thereon”]
The Company’s Board of Directors is responsible for the other information. The 49 Where applicable. 50 Where applicable. 51 Where applicable. other information comprises the [information included in the X report52, but does not include the financial statements and our auditor’s report thereon.] Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. As described below, we have concluded that such a material misstatement of the other information exists. [Description of material misstatement of the other information]
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. [Description of each key audit matter in accordance with SA 701.]
Responsibilities of Management and Those Charged with Governance for
the Financial Statements [Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).]
Auditor’s Responsibilities for the Audit of the Financial Statements
[Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).]
We did not audit the financial statements/information of ________(number) branches included in the standalone financial statements of the Company whose 52 A more specific description of the other information, such as “the management report and chairman’s statement,” may be used to identify the other information. 53 The Key Audit Matters section is required for listed entities only. 54 Where applicable. financial statements / financial information reflect total assets of Rs.______ as at 31stMarch, 20XX and total revenues of Rs._______ for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
[Reporting in accordance with SA 700 (Revised)–see Illustration 1 in SA 700 (Revised).] While reporting under Section 143(3) of the Companies Act, 2013, the auditor is required to suitably reword the wordings given in the Illustration in SA 700(Revised) to meet the circumstances of the audit.
(Firm’s Registration No.)
(Name of the Member Signing the Audit Report) (Designation55) (Membership No.) Place of Signature: Date: 55Partner or Proprietor, as the case may be. Illustration 6 – An auditor’s report of a company, whether listed or unlisted, containing a qualified opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and there is a limitation of scope with respect to a material item in the consolidated financial statements which also affects the other information. For purposes of this illustrative auditor’s report, the following circumstances are assumed: Audit of a complete set of consolidated financial statements of a company, whether listed or unlisted (registered under the Companies Act, 2013) using a fair presentation framework. The audit is a group audit (i.e., SA 600 applies). The consolidated financial statements are prepared by management of the company in accordance with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013. The terms of the audit engagement reflect the description of management’s responsibility for the consolidated financial statements in SA 210.
The auditor was unable to obtain sufficient appropriate audit evidence
regarding an investment in a foreign associate. The possible effects of the inability to obtain sufficient appropriate audit evidence are deemed to be material but not pervasive to the consolidated financial statements (i.e., a qualified opinion is appropriate). The relevant ethical requirements that apply to the audit are the Code of Ethics issued by ICAI and the relevant provisions of the Companies Act,
2013. Based on the audit evidence obtained, the auditor has concluded that a material uncertainty does not exist related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern in accordance with SA 570 (Revised). Key audit matters have been communicated in accordance with SA 701. The auditor has obtained all of the other information prior to the date of the auditor’s report and the matter giving rise to the qualified opinion on the consolidated financial statements also affects the other information. Those responsible for oversight of the consolidated financial statements differ from those responsible for the preparation of the consolidated financial statements. In addition to the audit of the consolidated financial statements, the auditor has other reporting responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of ABC Company Limited (hereinafter referred to as the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and jointly controlled entities, which comprise the consolidated balance sheet as at March 31, 20XX, and the consolidated statement of profit and loss, (consolidated statement of changes in equity)56 and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (hereinafter referred to as “the consolidated financial statements”). In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associates and jointly controlled entities, as at March 31, 20XX, consolidated profit/loss, (consolidated changes in equity)57 and consolidated cash flows for the year then ended.
Basis for Qualified Opinion
The Group’s investment in XYZ Company, a foreign associate acquired during the year and accounted for by the equity method, is carried at Rs. XXX on the consolidated balance sheet as at March 31, 20XX, and ABC’s share of XYZ’s net income of Rs. XXX is included in ABC’s income for the year then ended. We 56 Where applicable. 57 Where applicable. were unable to obtain sufficient appropriate audit evidence about the carrying amount of ABC’s investment in XYZ as at March 31, 20XX and ABC’s share of XYZ’s net income for the year because we were denied access to the financial information, management, and the auditors of XYZ. Consequently, we were unable to determine whether any adjustments to these amounts were necessary. We conducted our audit in accordance with Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group and its associates and jointly controlled entities in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in India in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Other Information [or another title if appropriate, such as “Information
Other than the Financial Statements and Auditor’s Report Thereon”]
The company’s Board of Directors is responsible for the other information. The other information comprises the [information included in the X report58, but does not include the consolidated financial statements and our auditor’s report thereon.] Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. As described in the Basis for Qualified Opinion section above, we were unable to 58 A more specific description of the other information, such as “the management report and chairman’s statement,” may be used to identify the other information. obtain sufficient appropriate audit evidence about the carrying amount of ABC’s investment in XYZ as at March 31, 20XX and ABC’s share of XYZ’s net income for the year. Accordingly, we are unable to conclude whether or not the other information is materially misstated with respect to this matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Basis for Qualified Opinion section, we have determined the matters described below to be the key audit matters to be communicated in our report. [Description of each key audit matter in accordance with SA 701.]
Responsibilities of Management and Those Charged with Governance for
the Financial Statements [Reporting in accordance with SA 700 (Revised)–see Illustration 2 in SA 700 (Revised).]
Auditor’s Responsibilities for the Audit of the Financial Statements
[Reporting in accordance with SA 700 (Revised)–see Illustration 2 in SA 700 (Revised).]
