Format of Auditor’s Report on Consolidated Financial Statements under the Companies Act, 2013

AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
UNDER THE COMPANIES ACT, 2013

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, 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
(click here to down­load the for­mat)
This for­mat will be added in the Appen­dix to SA 700
Mod­i­fied opin­ion on the con­sol­i­dat­ed finan­cial state­ments
(click here to down­load the for­mat)
This for­mat will be added in the Appen­dix to SA 705

Leave a Reply

Your email address will not be published. Required fields are marked *