Standard on Auditing (SA) 700 (Revised), Forming an Opinion and

Reporting on Financial Statements

Contents
Paragraph(s)
Introduction
Scope of this SA .......................................................................................................... 14
Effective Date ................................................................................................................... 5
Objectives ....................................................................................................................... 6
Definitions ...................................................................................................................79
Requirements
Forming an Opinion on the Financial Statements ......................................................1015
Form of Opinion ........................................................................................................1619
Auditors Report........................................................................................................20 50
Supplementary Information Presented with the Financial Statements ...................... 51-52
Application and Other Explanatory Material
Qualitative Aspects of the Entitys Accounting Practices ......................................... A1A3
Disclosure of the Effect of Material Transactions and Events
on the Information Conveyed in the Financial Statements ............................................ A4
Description of the Applicable Financial Reporting Framework ............................... A5A10
Form of Opinion ................................................................................................... A11A12
Auditors Report.................................................................................................... A13A69
Supplementary Information Presented with the Financial Statements .................. A70-A76
Material Modifications vis--vis ISA 700(Revised), Forming an Opinion and Reporting on Financial
Statements
Appendix: Illustrations of Independent Auditors Reports on Financial Statements
Standard on Auditing (SA) 700 (Revised), Forming an Opinion and Reporting on Financial
Statements, should be read in conjunction with SA 200, Overall Objectives of the Independent
Auditor and the Conduct of an Audit in Accordance with Standards on Auditing.
Introduction
Scope of this SA
1. This Standard on Auditing (SA) deals with the auditors responsibility to form an opinion on the
financial statements. It also deals with the form and content of the auditors report issued as a result of
an audit of financial statements.
1
2. SA 701 deals with the auditors responsibility to communicate key audit matters in the auditors
report. SA 7052 (Revised) and SA 7063 (Revised) deal with how the form and content of the auditors
report are affected when the auditor expresses a modified opinion or includes an Emphasis of Matter
paragraph or an Other Matter paragraph in the auditors report. Other SAs also contain reporting
requirements that are applicable when issuing an auditors report.

3. This SA applies to an audit of a complete set of general purpose financial statements and is
written in that context. SA 8004 deals with special considerations when financial statements are
prepared in accordance with a special purpose framework. SA 8055 deals with special considerations
relevant to an audit of a single financial statement or of a specific element, account or item of a
financial statement. This SA also applies to audits for which SA 800 or SA 805 apply.
4. The requirements of this SA are aimed at addressing an appropriate balance between the need
for consistency and comparability in auditor reporting globally and the need to increase the value of
auditor reporting by making the information provided in the auditors report more relevant to users.
This SA promotes consistency in the auditors report, but recognizes the need for flexibility to
accommodate particular circumstances of individual jurisdictions. Consistency in the auditors 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. It also helps to promote the users understanding and to identify
unusual circumstances when they occur.
Effective Date
5. This SA is effective for audits of financial statements for periods beginning on or after 01st April,
2017.

Objectives
6. The objectives of the auditor are:
(a) To form an opinion on the financial statements based on an evaluation of the conclusions
drawn from the audit evidence obtained; and
(b) To express clearly that opinion through a written report.

Definitions
7. For purposes of the SAs, the following terms have the meanings attributed below:
(a) General purpose financial statements Financial statements prepared in accordance with a

1
SA 701, Communicating Key Audit Matters in the Independent Auditors Report.
2
SA 705 (Revised), Modifications to the Opinion in the Independent Auditors Report.
3
SA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditors Report.
4
SA 800, Special ConsiderationsAudits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
5
SA 805, Special ConsiderationsAudits of Single Financial Statements and Specific Elements, Accounts or Items of a
Financial Statement.
2
 general purpose framework.
(b) General purpose framework A financial reporting framework designed to meet the common
financial information needs of a wide range of users. The financial reporting framework may
be a fair presentation framework or a compliance framework.
The term fair presentation framework is used to refer to a financial reporting framework that
requires compliance with the requirements of the framework and:
(i) Acknowledges explicitly or implicitly that, to achieve fair presentation of the financial
statements, it may be necessary for management to provide disclosures beyond
those specifically required by the framework; or
(ii) Acknowledges explicitly that it may be necessary for management to depart from a
requirement of the framework to achieve fair presentation of the financial statements.
Such departures are expected to be necessary only in extremely rare circumstances.
The term compliance framework is used to refer to a financial reporting framework that
requires compliance with the requirements of the framework, but does not contain the
acknowledgements in (i) or (ii) above.6
(c) Unmodified opinion The opinion expressed by the auditor when the auditor concludes that
the financial statements are prepared, in all material respects, in accordance with the
applicable financial reporting framework.7
8. Reference to financial statements in this SA means a complete set of general purpose
financial statements, including the related notes. The related notes ordinarily comprise a summary of
significant accounting policies and other explanatory information and any other information required to
be included as part of the financial statements by the laws and regulations governing the entity. The
requirements of the applicable financial reporting framework determine the form and content of the
financial statements, and what constitutes a complete set of financial statements.
9. Reference to Accounting Standards in this SA includes :
The Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI)8;
or
The Standards of Accounting notified by the Central Government in pursuance of section 133
of the Companies Act, 2013 and the Rules thereunder; or
The International Financial Reporting Standards (IFRSs); or
The International Public Sector Accounting Standards (IPSASs) issued by the International
Public Sector Accounting Standards Board;
as may be applicable to the entity.

Requirements
Forming an Opinion on the Financial Statements
10. The auditor shall form an opinion on whether the financial statements are prepared, in all

6
SA 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing,
paragraph 13(a).
7
Paragraphs 2526 deal with the phrases used to express this opinion in the case of a fair presentation framework and a
compliance framework respectively.
8
For example, the Accounting Standards for Local Bodies issued by the Institute of Chartered Accountants of India.
3
material respects, in accordance with the applicable financial reporting framework.9&10
11. In order to form that opinion, the auditor shall conclude as to whether the auditor has obtained
reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error. That conclusion shall take into account:
(a) The auditors conclusion, in accordance with SA 330, whether sufficient appropriate audit
evidence has been obtained;11
(b) The auditors conclusion, in accordance with SA 450, whether uncorrected misstatements are
material, individually or in aggregate;12 and
(c) The evaluations required by paragraphs 1215.
12. The auditor shall evaluate whether the financial statements are prepared, in all material
respects, in accordance with the requirements of the applicable financial reporting framework. This
evaluation shall include consideration of the qualitative aspects of the entitys accounting practices,
including indicators of possible bias in managements judgments. (Ref: Para. A1A3)
13. In particular, the auditor shall evaluate whether, in view of the requirements of the applicable
financial reporting framework:
(a) The financial statements adequately disclose the significant accounting policies selected and
applied;
(b) The accounting policies selected and applied are consistent with the applicable financial
reporting framework and are appropriate;
(c) The accounting estimates made by management are reasonable;
(d) The information presented in the financial statements is relevant, reliable, comparable, and
understandable;
(e) The financial statements provide adequate disclosures to enable the intended users to
understand the effect of material transactions and events on the information conveyed in the
financial statements; and (Ref: Para. A4)
(f) The terminology used in the financial statements, including the title of each financial
statement, is appropriate.
14. When the financial statements are prepared in accordance with a fair presentation framework,
the evaluation required by paragraphs 1213 shall also include whether the financial statements
achieve fair presentation. The auditors evaluation as to whether the financial statements achieve fair
presentation shall include consideration of:
(a) The overall presentation, structure and content of the financial statements; and
(b) Whether the financial statements, including the related notes, represent the underlying
transactions and events in a manner that achieves fair presentation.
15. The auditor shall evaluate whether the financial statements adequately refer to or describe the
applicable financial reporting framework. (Ref: Para. A5A10)
Form of Opinion
9
SA 200, paragraph 11
10
Paragraphs 2526 deal with the phrases used to express this opinion in the case of a fair presentation framework and a
compliance framework respectively.
11
SA 330, The Auditors Responses to Assessed Risks, paragraph 26
12
SA 450, Evaluation of Misstatements Identified during the Audit, paragraph 11
4
16. The auditor shall express an unmodified opinion when the auditor concludes that the financial
statements are prepared, in all material respects, in accordance with the applicable financial reporting
framework.
17. If the auditor:
(a) concludes that, based on the audit evidence obtained, the financial statements as a whole are
not free from material misstatement; or
(b) is unable to obtain sufficient appropriate audit evidence to conclude that the financial
statements as a whole are free from material misstatement,
the auditor shall modify the opinion in the auditors report in accordance with SA 705
(Revised).
18. If financial statements prepared in accordance with the requirements of a fair presentation
framework do not achieve fair presentation, the auditor shall discuss the matter with management
and, depending on the requirements of the applicable financial reporting framework and how the
matter is resolved, shall determine whether it is necessary to modify the opinion in the auditors report
in accordance with SA 705 (Revised). (Ref: Para. A11)
19. When the financial statements are prepared in accordance with a compliance framework, the
auditor is not required to evaluate whether the financial statements achieve fair presentation.
However, if in extremely rare circumstances the auditor concludes that such financial statements are
misleading, the auditor shall discuss the matter with management and, depending on how it is
resolved, shall determine whether, and how, to communicate it in the auditors report. (Ref: Para. A12)
Auditors Report
20. The auditors report shall be in writing. (Ref: Para. A13A14)
Auditors Report for Audits Conducted in Accordance with Standards on Auditing
Title
21. The auditors report shall have a title that clearly indicates that it is the report of an independent
auditor. (Ref: Para. A15)
Addressee
22. The auditors report shall be addressed, as appropriate, based on the circumstances of the
engagement. (Ref: Para. A16)
Auditors Opinion
23. The first section of the auditors report shall include the auditors opinion, and shall have the
heading Opinion.
24. The Opinion section of the auditors report shall also:
(a) Identify the entity whose financial statements have been audited;
(b) State that the financial statements have been audited;
(c) Identify the title of each statement comprising the financial statements;
(d) Refer to the notes, including the summary of significant accounting policies; and
(e) Specify the date of, or period covered by, each financial statement comprising the financial
statements. (Ref: Para. A17A18)

5
25. When expressing an unmodified opinion on financial statements prepared in accordance with a
fair presentation framework, the auditors opinion shall, unless otherwise required by law or regulation,
use one of the following phrases, which are regarded as being equivalent:
(a) In our opinion, the accompanying financial statements present fairly, in all material respects,
[] in accordance with [the applicable financial reporting framework]; or
(b) In our opinion, the accompanying financial statements give a true and fair view of [] in
accordance with [the applicable financial reporting framework]. (Ref: Para. A19A26)
26. When expressing an unmodified opinion on financial statements prepared in accordance with a
compliance framework, the auditors opinion shall be that the accompanying financial statements are
prepared, in all material respects, in accordance with [the applicable financial reporting framework].
(Ref: Para. A21A26)
27. If the reference to the applicable financial reporting framework in the auditors opinion is not to
Accounting Standards referred to in paragraph 9, the auditors opinion shall identify the origin of such
other framework.
Basis for Opinion
28 The auditors report shall include a section, directly following the Opinion section, with the
heading Basis for Opinion, that: (Ref: Para. A27)
(a) States that the audit was conducted in accordance with Standards on Auditing; (Ref: Para.
A28)
(b) Refers to the section of the auditors report that describes the auditors responsibilities under
the SAs;
(c) Includes a statement that the auditor is independent of the entity in accordance with the
relevant ethical requirements relating to the audit, and has fulfilled the auditors other ethical
responsibilities in accordance with these requirements. The statement shall refer to the Code
of Ethics issued by ICAI(Ref: Para. A29A34)
(d) States whether the auditor believes that the audit evidence the auditor has obtained is
sufficient and appropriate to provide a basis for the auditors opinion.
Going Concern
29. Where applicable, the auditor shall report in accordance with SA 570 (Revised).13
Key Audit Matters
30. For audits of complete sets of general purpose financial statements of listed entities, the auditor
shall communicate key audit matters in the auditors report in accordance with SA 701.
31. When the auditor is otherwise required by law or regulation or decides to communicate key
audit matters in the auditors report, the auditor shall do so in accordance with SA 701. (Ref: Para.
A35 A38)
Responsibilities for the Financial Statements
32. The auditors report shall include a section with a heading Responsibilities of Management for
the Financial Statements. The auditors report shall use the term that is appropriate in the context of
the legal framework applicable to the entity and need not refer specifically to management. In some
entities, the appropriate reference may be to those charged with governance. (Ref: Para. A39)

13
SA 570 (Revised), Going Concern, paragraphs 2123
6
33. This section of the auditors report shall describe managements responsibility for: (Ref: Para.
A40A43)
(a) Preparing the financial statements in accordance with the applicable financial reporting
framework, and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due
to fraud or error; and
(b) Assessing the entitys ability to continue as a going concern14 and whether the use of the
going concern basis of accounting is appropriate as well as disclosing, if applicable, matters
relating to going concern. The explanation of managements responsibility for this assessment
shall include a description of when the use of the going concern basis of accounting is
appropriate. (Ref: Para. A43)
34. This section of the auditors report shall also identify those responsible for the oversight of the
financial reporting process, when those responsible for such oversight are different from those who
fulfill the responsibilities described in paragraph 33 above. In this case, the heading of this section
shall also refer to Those Charged with Governance or such term that is appropriate in the context of
the legal framework applicable to entity. (Ref: Para. A44)
35. When the financial statements are prepared in accordance with a fair presentation framework,
the description of responsibilities for the financial statements in the auditors report shall refer to the
preparation and fair presentation of these financial statements or the preparation of financial
statements that give a true and fair view, as appropriate in the circumstances.
Auditors Responsibilities for the Audit of the Financial Statements
36. The auditors report shall include a section with the heading Auditors Responsibilities for the
Audit of the Financial Statements.
37. This section of the auditors report shall: (Ref: Para. A45)
(a) State that the objectives of the auditor are to:
(i) Obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error; and
(ii) Issue an auditors report that includes the auditors opinion. (Ref: Para. A46)
(b) State that reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with SAs will always detect a material misstatement when it
exists; and
(c) State that misstatements can arise from fraud or error, and either:
(i) Describe that they are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on
15
the basis of these financial statements; or
(ii) Provide a definition or description of materiality in accordance with the applicable
financial reporting framework. (Ref: Para. A47)
38. The Auditors Responsibilities for the Audit of the Financial Statements section of the auditors
report shall further: (Ref: Para. A45)

14
SA 570 (Revised), paragraph 2
15
SA 320, Materiality in Planning and Performing an Audit, paragraph 2
7
(a) State that, as part of an audit in accordance with SAs, the auditor exercises professional
judgment and maintains professional skepticism throughout the audit; and
(b) Describe an audit by stating that the auditors responsibilities are:
(i) To identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error; to design and perform audit procedures responsive to
those risks; and to obtain audit evidence that is sufficient and appropriate to provide a
basis for the auditors opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
(ii) To obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal control. In
circumstances when the auditor also has a responsibility to express an opinion on the
effectiveness of internal control in conjunction with the audit of the financial
statements, the auditor shall omit the phrase that the auditors consideration of
internal control is not for the purpose of expressing an opinion on the effectiveness of
the entitys internal control.
(iii) To evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
(iv) To conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the entitys ability to continue as a going concern. If the auditor concludes that a
material uncertainty exists, the auditor is required to draw attention in the auditors
report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify the opinion. The auditors conclusions are based on the audit
evidence obtained up to the date of the auditors report. However, future events or
conditions may cause an entity to cease to continue as a going concern.
(v) When the financial statements are prepared in accordance with a fair presentation
framework, to evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
(c) When SA 60016 applies, further describe the auditors responsibilities in a group audit
engagement by stating:
The division of responsibility for the financial information of the entity by indicating the extent
to which the financial information of components is audited by the other auditors have been
included in the financial information of the entity, e.g., the number of
divisions/branches/subsidiaries or other components audited by other auditors
39. The Auditors Responsibilities for the Audit of the Financial Statements section of the auditors
report also shall: (Ref: Para. A45)
(a) State that the auditor communicates with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,

16
SA 600, Using the Work of Another Auditor.
8
 including any significant deficiencies in internal control that the auditor identifies during the
audit;
(b) State that the auditor provides those charged with governance with a statement that the
auditor has complied with relevant ethical requirements regarding independence and
communicate with them all relationships and other matters that may reasonably be thought to
bear on the auditors independence, and where applicable, related safeguards; and
(c) For audits of financial statements of all such entities for which key audit matters are
communicated in accordance with SA 701, state that, from the matters communicated with
those charged with governance, the auditor determines those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the
key audit matters. In accordance with the requirements of SA 701, the auditor describes these
matters in the auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, the auditor determines that a matter should
not be communicated in the auditors report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication. (Ref: Para. A48)
Location of the description of the auditors responsibilities for the audit of the financial statements
40. The description of the auditors responsibilities for the audit of the financial statements required
by paragraphs 3839 shall be included: (Ref: Para. A49)
(a) Within the body of the auditors report;
(b) Within an appendix to the auditors report, in which case the auditors report shall include a
reference to the location of the appendix; or (Ref: Para. A49A50)
(c) By a specific reference within the auditors report to the location of such a description on a
website of an appropriate authority, where law, regulation or the auditing standards expressly
permit the auditor to do so. (Ref: Para. A49, A51A52)
41. When the auditor refers to a description of the auditors responsibilities on a website of an
appropriate authority, the auditor shall determine that such description addresses, and is not
inconsistent with, the requirements in paragraphs 3839 of this SA. (Ref: Para. A51)
Other Reporting Responsibilities
42. If the auditor addresses other reporting responsibilities in the auditors report on the financial
statements that are in addition to the auditors responsibilities under the SAs, these other reporting
responsibilities shall be addressed in a separate section in the auditors report with a heading titled
Report on Other Legal and Regulatory Requirements or otherwise as appropriate to the content of
the section, unless these other reporting responsibilities address the same topics as those presented
under the reporting responsibilities required by the SAs in which case the other reporting
responsibilities may be presented in the same section as the related report elements required by the
SAs. (Ref: Para. A53A55)
43. If other reporting responsibilities are presented in the same section as the related report
elements required by the SAs, the auditors report shall clearly differentiate the other reporting
responsibilities from the reporting that is required by the SAs. (Ref: Para. A55)
44. If the auditors report contains a separate section that addresses other reporting responsibilities,
the requirements of paragraphs 2039 of this SA shall be included under a section with a heading
Report on the Audit of the Financial Statements. The Report on Other Legal and Regulatory
Requirements shall follow the Report on the Audit of the Financial Statements. (Ref: Para. A55)
9
Signature of the Auditor
45. The auditors report shall be signed. The report is signed by the auditor (i.e. the engagement
partner) in his personal name. Where the firm is appointed as the auditor, the report is signed in the
personal name of the auditor and in the name of the audit firm. The partner/proprietor signing the
audit report also needs to mention the membership number assigned by the Institute of Chartered
Accountants of India. They also include the registration number of the firm, wherever applicable, as
allotted by ICAI, in the audit reports signed by them17. (Ref: Para. A56-A57)
Place of Signature
46. The auditors report shall name specific location, which is ordinarily the city where the audit
report is signed.
Date of the Auditors Report
47. The auditors report shall be dated no earlier than the date on which the auditor has obtained
sufficient appropriate audit evidence on which to base the auditors opinion on the financial
statements, including evidence that: (Ref: Para. A58A61)
(a) All the statements that comprise the financial statements, including the related notes, have
been prepared; and
(b) Those with the recognized authority have asserted that they have taken responsibility for
those financial statements.
Auditors Report Prescribed by Law or Regulation
48.If the auditor is required by law or regulation applicable to the entity to use a specific layout, or
wording of the auditors report, the auditors report shall refer to Standards on Auditing only if the
auditors report includes, at a minimum, each of the following elements: (Ref: Para. A62 A63)
(a) A title.
(b) An addressee, as required by the circumstances of the engagement.
(c) An Opinion section containing an expression of opinion on the financial statements and a
reference to the applicable financial reporting framework used to prepare the financial
statements (see paragraph 27).
(d) An identification of the entitys financial statements that have been audited.
(e) A statement that the auditor is independent of the entity in accordance with the relevant
ethical requirements relating to the audit, and has fulfilled the auditors other ethical
responsibilities in accordance with these requirements. The statement shall refer to the Code
of Ethics issued by ICAI.
(f) Where applicable, a section that addresses, and is not inconsistent with, the reporting
requirements in paragraph 22 of SA 570 (Revised).

17 nd
The Council of the ICAI, at its 292 meeting held in January 2010, decided to require the members of the ICAI to include, in
addition to the other requirements relating to signature on the audit report, as prescribed under the relevant Standard on
Auditing, the registration number of the firm as allotted by ICAI, in the audit reports signed by them, and ensure that the
resolution passed by the company regarding appointment of the statutory auditor of the company under section 224 of the
Companies Act, 1956, also contain the registration number of the firm of the auditor(s) with the ICAI. These requirements came
th
into effect from April 1, 2010. Subsequently, the Council of the ICAI, at its 296 meeting held in June 2010, decided to extend
the requirement to mention the firm registration number to all reports issued pursuant to any attestation engagement, including
certificates, issued by the members as proprietor of/ partner in the said firm. The requirement applies where such firm
registration number has been allotted by the ICAI. The Council further decided to make this requirement effective for all
st
attestation reports/ certificates issued on or after 1 October, 2010.
10
(g) Where applicable, a Basis for Qualified (or Adverse) Opinion section that addresses, and is
not inconsistent with, the reporting requirements in paragraph 23 of SA 570 (Revised).
(h) Where applicable, a section that includes the information required by SA 701, or additional
information about the audit that is prescribed by law or regulation and that addresses, and is
not inconsistent with, the reporting requirements in that SA.18 (Ref: Para. A63A64)
(i) A description of managements responsibilities for the preparation of the financial statements
and an identification of those responsible for the oversight of the financial reporting process
that addresses, and is not inconsistent with, the requirements in paragraphs 3235.
(j) A reference to Standards on Auditing and the law or regulation, and a description of the
auditors responsibilities for an audit of the financial statements that addresses, and is not
inconsistent with, the requirements in paragraphs 3639. (Ref: Para. A49A50)
(k) The auditors signature.
(l) The Place of signature
(m) The date of the auditors report.
Auditors Report for Audits Conducted in Accordance with Both Standards on Auditing Issued by ICAI
and International Standards on Auditing or Auditing Standards of Any Other Jurisdiction
49. An auditor may be required to conduct an audit in accordance with, in addition to the Standards
on Auditing issued by ICAI, the International Standards on Auditing or auditing standards of any other
jurisdiction. If this is the case, the auditors report may refer to Standards on Auditing in addition to the
International Standards on Auditing or auditing standards of such other jurisdiction, but the auditor
shall do so only if: (Ref: Para. A68A69)
(a) There is no conflict between the requirements in the ISAs or such auditing standards of other
jurisdiction and those in SAs that would lead the auditor (i) to form a different opinion, or (ii)
not to include an Emphasis of Matter paragraph or Other Matter paragraph that, in the
particular circumstances, is required by SAs; and
(b) The auditors report includes, at a minimum, each of the elements set out in paragraphs
48(a)(m) above when the auditor uses the layout or wording specified by the Standards on
Auditing. However, reference to law or regulation in paragraph 48(j) shall be read as
reference to the Standards on Auditing. The auditors report shall thereby identify such
Standards on Auditing.
50. When the auditors report refers to both the ISAs or the auditing standards of a specific jurisdiction
and the Standards on Auditing issued by ICAI, the auditors report shall clearly identify the same
including the jurisdiction of origin of the other auditing standards.
Supplementary Information Presented with the Financial Statements (Ref: Para. A70
A76)
51. If supplementary information that is not required by the applicable financial reporting framework is
presented with the audited financial statements, the auditor shall evaluate whether, in the auditors
professional judgment, supplementary information is nevertheless an integral part of the financial
statements due to its nature or how it is presented. When it is an integral part of the financial
statements, the supplementary information shall be covered by the auditors opinion.
52. If supplementary information that is not required by the applicable financial reporting framework is

18
SA 701, paragraphs 1116
11
not considered an integral part of the audited financial statements, the auditor shall evaluate whether
such supplementary information is presented in a way that sufficiently and clearly differentiates it from
the audited financial statements. If this is not the case, then the auditor shall ask management to
change how the unaudited supplementary information is presented. If management refuses to do so,
the auditor shall identify the unaudited supplementary information and explain in the auditors report
that such supplementary information has not been audited.
***

Application and Other Explanatory Material

Qualitative Aspects of the Entitys Accounting Practices (Ref: Para. 12)
A1. Management makes a number of judgments about the amounts and disclosures in the financial
statements.
A2. SA 260 (Revised) contains a discussion of the qualitative aspects of accounting practices19. In
considering the qualitative aspects of the entitys accounting practices, the auditor may become
aware of possible bias in managements judgments. The auditor may conclude that the cumulative
effect of a lack of neutrality, together with the effect of uncorrected misstatements, causes the
financial statements as a whole to be materially misstated. Indicators of a lack of neutrality that may
affect the auditors evaluation of whether the financial statements as a whole are materially misstated
include the following:
The selective correction of misstatements brought to managements attention during the audit
(e.g., correcting misstatements with the effect of increasing reported earnings, but not
correcting misstatements that have the effect of decreasing reported earnings).
Possible management bias in the making of accounting estimates.
A3. SA 540 addresses possible management bias in making accounting estimates.20 Indicators of
possible management bias do not constitute misstatements for purposes of drawing conclusions on
the reasonableness of individual accounting estimates. They may, however, affect the auditors
evaluation of whether the financial statements as a whole are free from material misstatement.
Disclosures of the Effect of Material Transactions and Events on the Information
Conveyed in the Financial Statements (Ref: Para. 13(e))
A4. It is common for financial statements prepared in accordance with a general purpose framework
to present an entitys financial position, financial performance and cash flows. In such circumstances,
the auditor evaluates whether the financial statements provide adequate disclosures to enable the
intended users to understand the effect of material transactions and events on the entitys financial
position, financial performance and cash flows.
Description of the Applicable Financial Reporting Framework (Ref: Para. 15)
A5. As explained in SA 200, the preparation of the financial statements by management and, where
appropriate, those charged with governance requires the inclusion of an adequate description of the
applicable financial reporting framework in the financial statements.21 That description advises users
of the financial statements of the framework on which the financial statements are based.
A6. A description that the financial statements are prepared in accordance with a particular
applicable financial reporting framework is appropriate only if the financial statements comply with all

19
SA 260 (Revised), Communication with Those Charged with Governance, Appendix 2
20
SA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, paragraph 21
21
SA 200, paragraphs A2A3
12
the requirements of that framework that are effective during the period covered by the financial
statements.
A7. A description of the applicable financial reporting framework that contains imprecise qualifying
or limiting language (e.g., the financial statements are in substantial compliance with Accounting
Standards) is not an adequate description of that framework as it may mislead users of the financial
statements.
Reference to More than One Financial Reporting Framework
A8. In some cases, the financial statements may represent that they are prepared in accordance
with two financial reporting frameworks (e.g., Accounting Standards referred to in section 133 of the
Companies Act, 2013 and the IFRSs). This may be because management is required, or has chosen,
to prepare the financial statements in accordance with both frameworks, in which case both are
applicable financial reporting frameworks. Such description is appropriate only if the financial
statements comply with each of the frameworks individually. To be regarded as being prepared in
accordance with both frameworks, the financial statements need to comply with both frameworks
simultaneously and without any need for reconciling statements. In practice, simultaneous compliance
is unlikely unless the other framework (e.g., IFRSs) has been adopted as the framework applicable to
that entity, or has eliminated all barriers to compliance with it.
A9. Financial statements that are prepared in accordance with one financial reporting framework
and that contain a note or supplementary statement reconciling the results to those that would be
shown under another framework are not prepared in accordance with that other framework. This is
because the financial statements do not include all the information in the manner required by that
other framework.
A10. The financial statements may, however, be prepared in accordance with one applicable
financial reporting framework and, in addition, describe in the notes to the financial statements the
extent to which the financial statements comply with another framework (e.g., financial statements
prepared in accordance with the Accounting Standards that also describe the extent to which they
comply with IFRSs). Such description may constitute supplementary financial information as
discussed in paragraph 52 and is covered by the auditors opinion if it cannot be clearly differentiated
from the financial statements.
Form of Opinion (Ref: Para. 1819)
A11. There may be cases where the financial statements, although prepared in accordance with the
requirements of a fair presentation framework, do not achieve fair presentation. Where this is the
case, it may be possible for management to include additional disclosures in the financial statements
beyond those specifically required by the framework or, in extremely rare circumstances, to depart
from a requirement in the framework in order to achieve fair presentation of the financial statements.
A12. It will be extremely rare for the auditor to consider financial statements that are prepared in
accordance with a compliance framework to be misleading if, in accordance with SA 210, the auditor
determined that the framework is acceptable.22
Auditors Report (Ref: Para. 20)
A13. A written report encompasses reports issued in hard copy and those using an electronic
medium.
A14. The Appendix to this SA contains illustrations of auditors reports on financial statements,
incorporating the elements set out in paragraphs 2047. With the exception of the Opinion and Basis
22
SA 210, Agreeing the Terms of Audit Engagements, paragraph 6(a)
13
for Opinion sections, this SA does not establish requirements for ordering the elements of the
auditors report. However, this SA requires the use of specific headings, which are intended to assist
in making auditors reports that refer to audits that have been conducted in accordance with SAs
more recognizable, particularly in situations where the elements of the auditors report are presented
in an order that differs from the illustrative auditors reports in the Appendix to this SA.
Auditors Report for Audits Conducted in Accordance with Standards on Auditing
Title (Ref: Para. 21)
A15. A title indicating the report is the report of an independent auditor, for example, Independent
Auditors Report, distinguishes the independent auditors report from reports issued by others.
Addressee (Ref: Para. 22)
A16. Law, regulation or the terms of the engagement may specify to whom the auditors report is to
be addressed in that particular jurisdiction. The auditors report is normally addressed to those for
whom the report is prepared, often either to the shareholders or to those charged with governance of
the entity whose financial statements are being audited.
Auditors Opinion (Ref. Para. 2426)
Reference to the financial statements that have been audited
A17. The auditors report states, for example, that the auditor has audited the financial statements of
the entity, which comprise [state the title of each financial statement comprising the complete set of
financial statements required by the applicable financial reporting framework, specifying the date or
period covered by each financial statement] and notes to the financial statements, including a
summary of significant accounting policies.
A18. When the auditor is aware that the audited financial statements will be included in a document
that contains other information, such as an annual report, the auditor may consider, if the form of
presentation allows, identifying the page numbers on which the audited financial statements are
presented. This helps users to identify the financial statements to which the auditors report relates.
Present fairly, in all material respects or give a true and fair view
A19. The phrases present fairly, in all material respects, and give a true and fair view are regarded
as being equivalent. Whether the phrase present fairly, in all material respects, or the phrase give a
true and fair view is used in any particular jurisdiction is determined by the law or regulation
governing the audit of financial statements in that jurisdiction, or by generally accepted practice in that
jurisdiction. Where law or regulation requires the use of different wording, this does not affect the
requirement in paragraph 14 of this SA for the auditor to evaluate the fair presentation of financial
statements prepared in accordance with a fair presentation framework.
A20. When the auditor expresses an unmodified opinion, it is not appropriate to use phrases such as
with the foregoing explanation or subject to in relation to the opinion, as these suggest a
conditional opinion or a weakening or modification of opinion.
Description of the financial statements and the matters they present
A21. The auditors opinion covers the complete set of financial statements as defined by the
applicable financial reporting framework. For example, in the case of many general purpose
frameworks, the financial statements may include: Balance sheet, Profit and Loss Accounts, a
statement of changes in equity, a statement of cash flows, and related notes, which ordinarily
comprise a summary of significant accounting policies and other explanatory information. In some
entities, additional information may also be considered to be an integral part of the financial
14
statements.
A22. In the case of financial statements prepared in accordance with a fair presentation framework,
the auditors opinion states that the financial statements present fairly, in all material respects, or give
a true and fair view of, the matters that the financial statements are designed to present. For example,
in the case of companies under the Companies Act, 2013, the financial statements for financial year
2014-15, prepared in accordance with the Companies (Accounting Standards) Rules, 2006, these
matters are present true and fair view of the state of the companys affairs as at the end of its financial
year and profit or loss or cash flow for the year. Consequently, the [] in paragraph 25 and
elsewhere in this SA is intended to be replaced by the words in italics in the preceding sentence when
the applicable financial reporting framework is Ind AS/ Accounting Standard or, in the case of other
applicable financial reporting frameworks, be replaced with words that describe the matters that the
financial statements are designed to present.
Description of the applicable financial reporting framework and how it may affect the auditors opinion
A23. The identification of the applicable financial reporting framework in the auditors opinion is
intended to advise users of the auditors report of the context in which the auditors opinion is
expressed; it is not intended to limit the evaluation required in paragraph 14. The applicable financial
reporting framework is identified in such terms as:
.In accordance with the Accounting Standards prescribed under section 133 of the
Companies Act, 2013 or
.In accordance with the Accounting Standards issued by the Institute of Chartered
Accountants of India
in accordance with International Financial Reporting Standards
A24. When the applicable financial reporting framework encompasses financial reporting standards
and legal or regulatory requirements, the framework is identified in such terms as in accordance
with the Accounting Standards prescribed under section 133 of the Companies Act, 2013.SA 210
deals with circumstances where there are conflicts between the financial reporting standards and the
legislative or regulatory requirements.23
A25. As indicated in paragraph A8, the financial statements may be prepared in accordance with two
financial reporting frameworks, which are therefore both applicable financial reporting frameworks.
Accordingly, each framework is considered separately when forming the auditors opinion on the
financial statements, and the auditors opinion in accordance with paragraphs 2527 refers to both
frameworks as follows:
(a) If the financial statements comply with each of the frameworks individually, two opinions are
expressed: that is, that the financial statements are prepared in accordance with one of the
applicable financial reporting frameworks (e.g., in case of a company incorporated in India,
the Accounting Standards issued pursuant to section 133 of the Companies Act, 2013) and
an opinion that the financial statements are prepared in accordance with the other applicable
financial reporting framework (e.g., IFRSs). These opinions may be expressed separately or
in a single sentence (e.g., the financial statements are presented fairly, in all material respects
[], in accordance with accounting principles generally accepted in India and with IFRSs).
(b) If the financial statements comply with one of the frameworks but fail to comply with the other
framework, an unmodified opinion can be given that the financial statements are prepared in
accordance with the one framework (e.g., in case of a company incorporated in India, the

23
SA 210, paragraph 18
15
 Accounting Standards issued pursuant to section 133 of the Companies Act, 2013) but a
modified opinion given with regard to the other framework (e.g., IFRSs) in accordance with
SA 705 (Revised).
A26. As indicated in paragraph A10, the financial statements may represent compliance with the
applicable financial reporting framework and, in addition, disclose the extent of compliance with
another financial reporting framework. Such supplementary information is covered by the auditors
opinion if it cannot be clearly differentiated from the financial statements (see paragraphs 5152 and
related application material in paragraphs A70A76). Accordingly,
(a) If the disclosure as to the compliance with the other framework is misleading, a modified
opinion is expressed in accordance with SA 705 (Revised).
(b) If the disclosure is not misleading, but the auditor judges it to be of such importance that it is
fundamental to the users understanding of the financial statements, an Emphasis of Matter
paragraph is added in accordance with SA 706 (Revised), drawing attention to the disclosure.
Basis for Opinion (Ref: Para. 28)
A27. The Basis for Opinion section provides important context about the auditors opinion.
Accordingly, this SA requires the Basis for Opinion section to directly follow the Opinion section in the
auditors report.
A28. The reference to the standards used conveys to the users of the auditors report that the audit
has been conducted in accordance with established standards.
Relevant ethical requirements
A29. The identification of the applicable relevant ethical requirements increases transparency about
those requirements relating to the particular audit engagement. SA 200 explains that relevant ethical
requirements ordinarily comprise of Code of Ethics issued by the Institute of Chartered Accountants
of India24. When the relevant ethical requirements include those of the Code of Ethics, the statement
may also make reference to the Code of Ethics. If the Code of Ethics related to an audit of financial
statements constitutes all of the ethical requirements relevant to the audit, the statement need not
identify a jurisdiction of origin.
A30. Relevant ethical requirements may exist in several different sources, such as the ethical code(s)
and additional rules and requirements within law and regulation. When the independence and other
relevant ethical requirements are contained in a limited number of sources, the auditor may choose to
name the relevant source(s) (e.g., the name of the code, rule or regulation applicable in the
jurisdiction), or may refer to a term that is commonly understood and that appropriately summarizes
those sources (e.g., independence requirements for audits of private entities in Jurisdiction X).
A31. Law or regulation, applicable auditing standards or the terms of an audit engagement may
require the auditor to provide in the auditors report more specific information about the sources of the
relevant ethical requirements, including those pertaining to independence that applied to the audit of
the financial statements.
A32. In determining the appropriate amount of information to include in the auditors report when
there are multiple sources of relevant ethical requirements relating to the audit of the financial
statements, an important consideration is balancing transparency against the risk of obscuring other
useful information in the auditors report.
Considerations specific to group audits

24
SA 200, paragraph A14
16
A33. In group audits when there are multiple sources of relevant ethical requirements, including
those pertaining to independence, the reference in the auditors report to the relevant ethical
requirements refers to those that are applicable to the principal auditor.
A34. The SAs do not establish specific independence or ethical requirements for auditors, including
component auditors, and thus do not extend, or otherwise override, the independence requirements
of the ICAI Code of Ethics to which the principal auditor is subject, nor do the SAs require that the
component auditor in all cases to be subject to the same specific independence requirements that are
applicable to the principal auditor.
Key Audit Matters (Ref: Para. 30)
A35. Law or regulation may require communication of key audit matters for audits of entities other
than listed entities, for example, entities characterized in such law or regulation as public interest
entities.
A36. The auditor may also decide to communicate key audit matters for other entities, including those
that may be of significant public interest, for example because they have a large number and wide
range of stakeholders and considering the nature and size of the business. Examples of such entities
may include financial institutions (such as banks, insurance companies, and pension funds), and
other entities such as charities.
A37. SA 210 requires the auditor to agree the terms of the audit engagement with management and
those charged with governance, as appropriate, and explains that the roles of management and those
charged with governance in agreeing the terms of the audit engagement for the entity depend on the
governance arrangements of the entity and relevant law or regulation25. SA 210 also requires the
audit engagement letter or other suitable form of written agreement to include reference to the
expected form and content of any reports to be issued by the auditor.26 When the auditor is not
otherwise required to communicate key audit matters, SA 21027 explains that it may be helpful for the
auditor to make reference in the terms of the audit engagement to the possibility of communicating
key audit matters in the auditors report and, in certain jurisdictions, it may be necessary for the
auditor to include a reference to such possibility in order to retain the ability to do so.
Considerations specific to public sector entities
A38. Public sector entities, even where not listed, may be significant due to size, complexity or public
interest aspects. In such cases, an auditor of a public sector entity may be required by law or
regulation or may otherwise decide to communicate key audit matters in the auditors report.
Responsibilities for the Financial Statements (Ref: Para. 3233)
A39. SA 200 explains the premise, relating to the responsibilities of management and, where
appropriate, those charged with governance, on which an audit in accordance with SAs is
conducted.28 Management and, where appropriate, those charged with governance accept
responsibility for the preparation of the financial statements in accordance with the applicable
financial reporting framework, including, where relevant, their fair presentation. Management also
accepts responsibility for such internal control as it determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error. The
description of managements responsibilities in the auditors report includes reference to both
responsibilities as it helps to explain to users the premise on which an audit is conducted. SA 260

25
SA 210, paragraphs 9 and A 20
26
SA 210, paragraph 10
27
SA 210, paragraph A23a
28
SA 200, paragraph 13(j)
17
(Revised) uses the term those charged with governance to describe the person(s) or organization(s)
with responsibility for overseeing the entity, and provides a discussion about the diversity of
governance structures across jurisdictions and by entity.
A40. There may be circumstances when it is appropriate for the auditor to add to the descriptions of
the responsibilities of management and those charged with governance in paragraphs 3334 to
reflect additional responsibilities that are relevant to the preparation of the financial statements in the
context of the particular jurisdiction or the nature of the entity.
A41. SA 210 requires the auditor to agree managements responsibilities in an engagement letter or
other suitable form of written agreement.29 SA 210 provides some flexibility in doing so, by explaining
that, if law or regulation prescribes the responsibilities of management and, where appropriate, those
charged with governance in relation to financial reporting, the auditor may determine that the law or
regulation includes responsibilities that, in the auditors judgment, are equivalent in effect to those set
out in SA 210. For such responsibilities that are equivalent, the auditor may use the wording of the
law or regulation to describe them in the engagement letter or other suitable form of written
agreement. In such cases, this wording may also be used in the auditors report to describe the
responsibilities as required by paragraph 33(a) of this SA. In other circumstances, including where the
auditor decides not to use the wording of law or regulation as incorporated in the engagement letter,
the wording in paragraph 33(a) of this SA is used. In addition to including the description of
managements responsibilities in the auditors report as required by paragraph 33, the auditor may
refer to a more detailed description of these responsibilities by including a reference to where such
information may be obtained (e.g., in the annual report of the entity or a website of an appropriate
authority).
A42. In some entities, law or regulation prescribing managements responsibilities may specifically
refer to a responsibility for the adequacy of accounting books and records, or accounting system. As
books, records and systems are an integral part of internal control (as defined in SA 315 30), the
descriptions in SA 210 and in paragraph 33 do not make specific reference to them.
A43. The Appendix to this SA provides illustrations of how the requirement in paragraph 33(b) would
be applied when Accounting Standards is the applicable financial reporting framework. If an
applicable financial reporting framework other than Accounting Standards is used, the illustrative
statements featured in the Appendix to this SA may need to be adapted to reflect the application of
the other financial reporting framework in the circumstances.
Oversight of the financial reporting process (Ref: Para. 34)
A44. When some, but not all, of the individuals involved in the oversight of the financial reporting
process are also involved in preparing the financial statements, the description as required by
paragraph 34 of this SA may need to be modified to appropriately reflect the particular circumstances
of the entity. When individuals responsible for the oversight of the financial reporting process are the
same as those responsible for the preparation of the financial statements, no reference to oversight
responsibilities is required.
Auditors Responsibilities for the Audit of the Financial Statements (Ref: Para. 3639)
A45. The description of the auditors responsibilities as required by paragraphs 3639 of this SA may
be tailored to reflect the specific nature of the entity, for example, when the auditors report addresses
consolidated financial statements. Illustration 2 in the Appendix to this SA includes an example of how

29
SA 210, paragraph 6(b)(i)(ii)
30
SA 315 , Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its
Environment, paragraph 4(c)
18
this may be done.
Objectives of the auditor (Ref: Para. 37(a))
A46. The auditors report explains that the objectives of the auditor are to obtain reasonable
assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors report that includes the auditors opinion.
These are in contrast to managements responsibilities for the preparation for the financial
statements.
Description of materiality (Ref: Para. 37(c))
A47. The Appendix to this SA provides illustrations of how the requirement in paragraph 37(c), to
provide a description of materiality, would be applied when Accounting Standards is the applicable
financial reporting framework. If an applicable financial reporting framework other than Accounting
Standards is used, the illustrative statements presented in the Appendix to this SA may need to be
adapted to reflect the application of the other financial reporting framework in the circumstances.
Auditors responsibilities relating to SA 701 (Ref: Para. 39(c))
A48. The auditor may also consider it useful to provide additional information in the description of the
auditors responsibilities beyond what is required by paragraph 39(c). For example, the auditor may
make reference to the requirement in paragraph 9 of SA 701 to determine the matters that required
significant auditor attention in performing the audit, taking into account areas of higher assessed risk
of material misstatement or significant risks identified in accordance with SA 315 ; significant auditor
judgments relating to areas in the financial statements that involved significant management
judgment, including accounting estimates that have been identified as having high estimation
uncertainty; and the effects on the audit of significant events or transactions that occurred during the
period.
Location of the description of the auditors responsibilities for the audit of the financial statements
(Ref: Para. 40, 48(j))
A49. Including the information required by paragraphs 3839 of this SA in an appendix to the
auditors report or, when law, regulation or national auditing standards expressly permit, referring to a
website of an appropriate authority containing such information may be a useful way of streamlining
the content of the auditors report. However, because the description of the auditors responsibilities
contains information that is necessary to inform users expectations of an audit conducted in
accordance with SAs, a reference is required to be included in the auditors report indicating where
such information can be accessed.
Location in an appendix (Ref: Para. 40(b), 48(j))
A50. Paragraph 40 permits the auditor to include the statements required by paragraphs 3839
describing the auditors responsibilities for the audit of the financial statements in an appendix to the
auditors report, provided that appropriate reference is made within the body of the auditors report to
the location of the appendix. The following is an illustration of how such a reference to an appendix
could be made in the auditors report:
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditors report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a material
19
 misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
A further description of our responsibilities for the audit of the financial
statements is included in appendix X of this auditors report. This description,
which is located at [indicate page number or other specific reference to the
location of the description], forms part of our auditors report.
Reference to a website of an appropriate authority (Ref: Para. 40(c), 41)
A51. Paragraph 40 explains that the auditor may refer to a description of the auditors responsibilities
located on a website of an appropriate authority, only if expressly permitted by law, regulation or the
applicable auditing standards. The information on the website that is incorporated in the auditors
report by way of a specific reference to the website location where such information can be found
may describe the auditors work, or the audit in accordance with SAs more broadly, but it cannot be
inconsistent with the description required in paragraphs 3839 of this SA. This means that the
wording of the description of the auditors responsibilities on the website may be more detailed, or
may address other matters relating to an audit of financial statements, provided that such wording
reflects and does not contradict the matters addressed in paragraphs 3839.
A52. An appropriate authority could be a national auditing standard setter, regulator, or an audit
oversight body. Such organizations are well-placed to ensure the accuracy, completeness and
continued availability of the standardized information. It would not be appropriate for the auditor to
maintain such a website. The following is an illustration of how such a reference to a website could be
made in the auditors report:
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditors report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
A further description of our responsibilities for the audit of the financial
statements is located at [Organizations] website at: [website address]. This
description forms part of our auditors report.
Other Reporting Responsibilities (Ref: Para. 4244)
A53. In case of some entities, the auditor may have additional responsibilities to report on other
matters that are supplementary to the auditors responsibilities under the SAs. For example, the
auditor may be asked to report certain matters if they come to the auditors attention during the
course of the audit of the financial statements. Alternatively, the auditor may be asked to perform and
report on additional specified procedures, or to express an opinion on specific matters, such as the
adequacy of accounting books and records, internal control over financial reporting or other
information. Standards on Auditing and/or other relevant pronouncements of the ICAI often provide
guidance on the auditors responsibilities with respect to specific additional reporting responsibilities.

20
A54. In some cases, the relevant law or regulation may require or permit the auditor to report on
these other responsibilities as part of their auditors report on the financial statements. In other cases,
the auditor may be required or permitted to report on them in a separate report.
A55. Paragraphs 4244 of this SA permit combined presentation of other reporting responsibilities
and the auditors responsibilities under the SAs only when they address the same topics and the
wording of the auditors report clearly differentiates the other reporting responsibilities from those
under the SAs. Such clear differentiation may make it necessary for the auditors report to refer to the
source of the other reporting responsibilities and to state that such responsibilities are beyond those
required under the SAs. Otherwise, other reporting responsibilities are required to be addressed in a
separate section in the auditors report with a heading Report on Other Legal and Regulatory
Requirements, or otherwise as appropriate to the content of the section. In such cases, paragraph 44
requires the auditor to include reporting responsibilities under the SAs under a heading titled Report
on the Audit of the Financial Statements.
Signature of the Auditor (Ref: Para 45)
A56. SQC 131 requires that the firm establish policies and procedures to provide reasonable
assurance that engagements are performed in accordance with professional standards and
applicable legal and regulatory requirements. Notwithstanding these SQC 1 requirements, naming the
engagement partner in the auditors report is intended to provide further transparency to the users of
the auditors report of a complete set of general purpose financial statements of an entity.
A57. In some cases, law or regulation may allow for the use of electronic signatures in the auditors
report.
Date of the Auditors Report (Ref: Para. 47)
A58. The date of the auditors report informs the user of the auditors report that the auditor has
considered the effect of events and transactions of which the auditor became aware and that
occurred up to that date. The auditors responsibility for events and transactions after the date of the
auditors report is addressed in SA 560.32
A59. Since the auditors opinion is provided on the financial statements and the financial statements
are the responsibility of management, the auditor is not in a position to conclude that sufficient
appropriate audit evidence has been obtained until evidence is obtained that all the statements that
comprise the financial statements, including the related notes, have been prepared and management
has accepted responsibility for them.
A60. In the case of some entities, the applicable law or regulation identifies the individuals or bodies
(e.g., the directors) that are responsible for concluding that all the statements that comprise the
financial statements, including the related notes, have been prepared, and specifies the necessary
approval process. In such cases, evidence is obtained of that approval before dating the report on the
financial statements. In case of some entities, however, the approval process may not be prescribed
in the applicable law or regulation. In such cases, the procedures the entity follows in preparing and
finalizing its financial statements in view of its management and governance structures are
considered in order to identify the individuals or body with the authority to conclude that all the
statements that comprise the financial statements, including the related notes, have been prepared.
In some cases, law or regulation identifies the point in the financial statement reporting process at
which the audit is expected to be complete.

31
SQC 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance
and Related Services Engagements, paragraph 3
32
SA 560, Subsequent Events, paragraphs 1017
21
A61. In the case of some entities, the Final approval of the financial statements by shareholders is
required before the financial statements are issued publicly. Final approval by shareholders is not
necessary for the auditor to conclude that sufficient appropriate audit evidence has been obtained.
The date of approval of the financial statements for purposes of SAs is the earlier date on which those
with the recognized authority determine that all the statements that comprise the financial statements,
including the related notes, have been prepared and that those with the recognized authority have
asserted that they have taken responsibility for them.
Auditors Report Prescribed by Law or Regulation (Ref: Para 48)
A62. SA 200 explains that the auditor may be required to comply with legal or regulatory
requirements in addition to SAs.33 When the differences between the legal or regulatory requirements
and SAs relate only to the layout and wording of the auditors report, the requirements in paragraph
48(a)(m)set out the minimum elements to be included in the auditors report to enable a reference to
the Standards on Auditing. In those circumstances, the requirements in paragraphs 2147 that are
not included in paragraph 48(a)(n) do not need to be applied including, for example, the required
ordering of the Opinion and Basis for Opinion sections.
A63. Where specific requirements in a particular law or regulation do not conflict with SAs, the layout
and wording required by paragraphs 2147 of this SA assist users of the auditors report in more
readily recognizing the auditors report as a report of an audit conducted in accordance with SAs.
Information Required by SA 701 (Ref: Para. 48(h))
A64. Law or regulation may require the auditor to provide additional information about the audit that
was performed, which may include information that is consistent with the objectives of SA 701, or may
prescribe the nature and extent of communication about such matters.
A65. The SAs do not override law or regulation that governs an audit of financial statements. When
SA 701 is applicable, reference can only be made to SAs in the auditors report if, in applying the law
or regulation, the section required by paragraph 48(h) of this SA is not inconsistent with the reporting
requirements in SA 701. In such circumstances, the auditor may need to tailor certain aspects of the
communication of key audit matters in the auditors report required by SA 701, for example by:
Modifying the heading Key Audit Matters, if law or regulation prescribes a specific heading;
Explaining why the information required by law or regulation is being provided in the auditors
report, for example by making a reference to the relevant law or regulation and describing
how that information relates to the key audit matters;
Where law or regulation prescribes the nature and extent of the description, supplementing
the prescribed information to achieve an overall description of each key audit matter that is
consistent with the requirement in paragraph 13 of SA 701.
A66. SA 210 deals with circumstances where law or regulation applicable to the entity prescribes the
layout or wording of the auditors report in terms that are significantly different from the requirements
of SAs, which in particular includes the auditors opinion. In these circumstances, SA 210 requires the
auditor to evaluate:
(a) Whether users might misunderstand the assurance obtained from the audit of the financial
statements and, if so,
(b) Whether additional explanation in the auditors report can mitigate possible misunderstanding.
If the auditor concludes that additional explanation in the auditors report cannot mitigate possible

33
SA 200, paragraph A55
22
misunderstanding, SA 210 requires the auditor not to accept the audit engagement, unless required
by law or regulation to do so. In accordance with SA 210, an audit conducted in accordance with such
law or regulation does not comply with SAs. Accordingly, the auditor does not include any reference
in the auditors report to the audit having been conducted in accordance with Standards on Auditing.34
Considerations specific to public sector entities
A67. Auditors of public sector entities may also have the ability pursuant to law or regulation to report
publicly on certain matters, either in the auditors report or in a supplementary report, which may
include information that is consistent with the objectives of SA 701. In such circumstances, the auditor
may need to tailor certain aspects of the communication of key audit matters in the auditors report
required by SA 701 or include a reference in the auditors report to a description of the matter in the
supplementary report.
Auditors Report for Audits Conducted in Accordance with Both Standards on Auditing issued by ICAI
and International Standards on Auditing/ Auditing Standards of Another Jurisdiction (Ref: Para. 49)
A68. The auditor may refer in the auditors report to the audit having been conducted in accordance
with both the Standards on Auditing issued by ICAI as well as the International Standards on
Auditing/auditing standards of another jurisdiction when, in addition to complying with the ISAs/
auditing standards of such other jurisdiction, the auditor complies with each of the SAs relevant to the
audit.
A69. A reference to both Standards on Auditing issued by ICAI and the International Standards on
Auditing/auditing standards of another jurisdiction is not appropriate if there is a conflict between the
requirements in SAs and those ISAs/ auditing standards of such other jurisdiction that would lead the
auditor to form a different opinion or not to include an Emphasis of Matter or Other Matter paragraph
that, in the particular circumstances, is required by SAs. In such a case, the auditors report refers
only to the auditing standards (either Standards on Auditing issued by ICAI or ISAs/the auditing
standards of such other jurisdiction) in accordance with which the auditors report has been prepared.
Supplementary Information Presented with the Financial Statements (Ref: Para. 51-52)
A70. In some circumstances, the entity may be required by law, regulation or standards, or may
voluntarily choose, to present together with the financial statements supplementary information that is
not required by the applicable financial reporting framework. For example, supplementary information
might be presented to enhance a users understanding of the applicable financial reporting framework
or to provide further explanation of specific financial statement items. Such information is normally
presented in either supplementary schedules or as additional notes.
A71. Paragraph 51 of this SA explains that the auditors opinion covers supplementary information
that is an integral part of the financial statements because of its nature or how it is presented. This
evaluation is a matter of professional judgment. To illustrate:
When the notes to the financial statements include an explanation or the reconciliation of the
extent to which the financial statements comply with another financial reporting framework,
the auditor may consider this to be supplementary information that cannot be clearly
differentiated from the financial statements. The auditors opinion would also cover notes or
supplementary schedules that are cross-referenced from the financial statements.
When an additional profit and loss account that discloses specific items of expenditure is
disclosed as a separate schedule included as an Appendix to the financial statements, the
auditor may consider this to be supplementary information that can be clearly differentiated

34
SA 210, paragraph 21
23
 from the financial statements.
A72. Supplementary information that is covered by the auditors opinion does not need to be
specifically referred to in the auditors report when the reference to the notes in the description of the
statements that comprise the financial statements in the auditors report is sufficient.
A73. Law or regulation may not require that the supplementary information be audited, and
management may decide to ask the auditor not to include the supplementary information within the
scope of the audit of the financial statements.
A74. The auditors evaluation whether unaudited supplementary information is presented in a manner
that could be construed as being covered by the auditors opinion includes, for example, where that
information is presented in relation to the financial statements and any audited supplementary
information, and whether it is clearly labeled as unaudited.
A75. Management could change the presentation of unaudited supplementary information that could
be construed as being covered by the auditors opinion, for example, by:
Removing any cross-references from the financial statements to unaudited supplementary
schedules or unaudited notes so that the demarcation between the audited and unaudited
information is sufficiently clear.
Placing the unaudited supplementary information outside of the financial statements or, if that
is not possible in the circumstances, at a minimum placing the unaudited notes together at the
end of the required notes to the financial statements and clearly labeling them as unaudited.
Unaudited notes that are intermingled with the audited notes can be misinterpreted as being
audited.
A76. The fact that supplementary information is unaudited does not relieve the auditor of the
responsibilities described in SA 720 (Revised).35

35
Proposed SA 720 (Revised), The Auditors Responsibilities Relating to Other Information
24
 Appendix
(Ref: Para. A14)
Illustrations of Independent Auditors Reports on Financial Statements
Illustration 1: An auditors report on financial statements of a listed entity prepared in
accordance with a fair presentation framework
Illustration 2: An auditors report on consolidated financial statements of a listed entity prepared
in accordance with a fair presentation framework
Illustration 3 Auditors Report on Financial Statements of an Unlisted Company Prepared in
Accordance with a Fair Presentation Framework
Illustration4AuditorsReportonFinancialStatementsofaNonCorporateEntityPreparedin
AccordancewithaFairPresentationFramework
Illustration5AuditorsReportonFinancialStatementsofNonCorporateEntityPreparedin
AccordancewithaGeneralPurposeComplianceFramework
Illustration 1 Auditors Report on Financial Statements of a Listed Entity
Prepared in Accordance with a Fair Presentation Framework

For purposes of this illustrative auditors 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 entity 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 managements 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 entitys
ability to continue as a going concern in accordance with SA 570 (Revised).
Key audit matters have been communicated in accordance with SA 701.
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 AUDITORS REPORT

To the Members of ABC Company Limited
1
Report on the Audit of the Standalone Financial Statements
Opinion
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)2 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 re included the Returns for the year ended on that date audited by the branch
auditors of the Companys branches located at (location of branches)]3.

1
The sub-title Report on the Audit of the Financial Statements is unnecessary in circumstances when the second sub-title
Report on Other Legal and Regulatory Requirements is not applicable.
2
Where applicable.
3
Where applicable.
26
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 Act 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 profit/loss, (changes in
equity)4 and its cash flows for the year ended on that date.
Basis for Opinion
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 Auditors 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
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.]
Managements Responsibility for the Stan Alone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (the Act) with respect to the preparation of these standalone that give a true
and fair view of the financial position, financial performance, (changes in equity)5 and cash flows of
the Company in accordance with6 the accounting principles generally accepted in India, including the
accounting Standards specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate implementation and maintenance of accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companys ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial reporting

4
Where applicable
5
Where applicable.
6
Where managements responsibility is to prepare financial statements that give a true and fair view, this may read:
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
International Financial Reporting Standards, and for such ...
27
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

Paragraph 40(b) of this SA explains that the shaded material below can be located in an Appendix to
the auditors report. Paragraph 40(c) explains that when law, regulation or applicable auditing
standards expressly permit, reference can be made to a website of an appropriate authority that
contains the description of the auditors responsibilities, rather than including this material in the
auditors report, provided that the description on the website addresses, and is not inconsistent with,
the description of the auditors responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies
act, 2013, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Companys ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors report to the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in

28
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.

Other Matter
We did not audit the financial statements/ information of . (number) branches included in
the stand alone financial statements of the Company whose financial statements/financial information
reflect total assets of Rs. .. as at 31st march 20XX and the total revenue of Rs.
. For the year ended on that date, as considered in the standalone 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 branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 (the Order), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give
in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books [and proper returns adequate for the purposes
of our audit have been received from the branches not visited by us.7]
(c) [The reports on the accounts of the branch offices of the Company audited under Section 143 (8)
of the Act by branch auditors have been sent to us and have been properly dealt with by us in
preparing this report8.]
(d) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by
this Report are in agreement with the books of account [and with the returns received from the
9
branches not visited by us ].

7
Where applicable.
8
Where applicable.
9
Where applicable.
29
(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
(f) On the basis of the written representations received from the directors as on 31st March, 20XX
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,
20XX from being appointed as a director in terms of Section 164 (2) of the Act.
(g) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
Annexure A.
(h) With respect to the other matters to be included in the Auditors Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in
its financial statements Refer Note XX to the financial statements; [or the Company
does not have any pending litigations which would impact its financial position10]
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts Refer Note XX to the financial statements; [or the Company did not
have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.11]
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company {or, following are the instances
of delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company or there were no amounts which were required to
be transferred to the Investor Education and Protection Fund by the Company12}.
For XYZ & Co
Chartered Accountants
(Firms Registration No.)

Signature
(Xxxxx X. Xxxx)
(Designation13)
(Membership No. XXXXX)
Place of Signature:
Date:

10
As may be applicable.
11
As may be applicable.
12
As may be applicable.
13
Partner or Proprietor, as the case may be
30
Illustration 2 Auditors Report on Consolidated Financial Statements of a
Listed Company (incorporated under the Companies Act, 2013) Prepared in
Accordance with a Fair Presentation Framework
For purposes of this illustrative auditors report, the following circumstances are assumed:
Audit of a complete set of consolidated financial statements of a listed Company
(incorporated under the Companies Act, 2013) using a fair presentation framework. The audit
is a group audit of an entity with subsidiaries (i.e., SA 600 applies).
The consolidated financial statements are prepared by management of the entity in
accordance with the Accounting Standards prescribed under section 133 of the Companies
Act, 2013 (a general purpose framework).
The terms of the audit engagement reflect the description of managements responsibility for
the consolidated financial statements in SA 210.
The auditor has concluded an unmodified (i.e., clean) opinion is appropriate based on the
audit evidence obtained.
The Code of Ethics issued by ICAI comprises all of the relevant ethical requirements that
apply to the principal auditor in relation to this audit.
Based on the audit evidence obtained, the principal auditor has concluded that a material
uncertainty does not exist related to events or conditions that may cast significant doubt on
the entitys ability to continue as a going concern in accordance with SA 570 (Revised).
Key audit matters have been communicated in accordance with SA 701.
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 principal auditor has other
reporting responsibilities required under the Companies Act, 2013.

INDEPENDENT AUDITORS REPORT

To the Members of ABC Company Limited
Report on the Audit of the Consolidated Financial Statements14
Opinion
We have audited the accompanying consolidated financial statements of ABC Company Limited
(hereinafter referred to as the Holding Company) and its subsidiaries (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, (the consolidated statement of changes in equity)15 and the consolidated cash flows
Statement 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, the
aforesaid consolidated financial statements give the information required by the Act in the manner so
required and give a true and fair view of in conformity with the accounting principles generally

14
The sub-title Report on the Audit of the Consolidated Financial Statements is unnecessary in circumstances when the
second sub-title Report on Other Legal and Regulatory Requirements is not applicable.
15
Where applicable.
31
accepted in India, of their consolidated state of affairs of the Company as at March 31, 20XX, of
16
consolidated profit/loss, (consolidated changes in equity) and its consolidated cash flows for the
year then ended.
Basis for Opinion
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 Auditors Responsibilities for the Audit of the Consolidated Financial Statements section of our
report. We are independent of the Group in accordance with the Code of Ethics issued by ICAI, and
we have fulfilled our other ethical responsibilities in accordance with the provisions of the Companies
Act, 2013. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key Audit Matters
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.
[Description of each key audit matter in accordance with SA 701.]
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
The Holding Companys Board of Directors is responsible for the preparation and presentation of
these consolidated financial statements in term of the requirements of the Companies Act, 2013 that
give a true and fair view of the consolidated financial position, consolidated financial performance and
consolidated cash flows of the Group including its Associates and Jointly controlled entities in
accordance with the accounting principles generally accepted in India, including the Accounting
Standards specified under section 133 of the Act. The respective Board of Directors of the
companies included in the Group and of its associates and jointly controlled entities are responsible
for maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities;
the selection and application of appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and the design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring accuracy and completeness of the
accounting records, relevant to eh preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error, which have
been used for the purpose of preparation of the consolidated financial statements by the Directors of
the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the companies
included in the Group and of its associates and jointly controlled entities are responsible for assessing
the ability of the Group and of its associates and jointly controlled entities to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associates and
jointly controlled entities are responsible for overseeing the financial reporting process of the Group
and of its associates and jointly controlled entities.

16
Where applicable.
32
Auditors Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditors report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these consolidated financial statements.

Paragraph 40(b) of this SA explains that the shaded material below can be located in an Appendix to
the auditors report. Paragraph 40(c) explains that when law, regulation or the applicable auditing
standards expressly permit, reference can be made to a website of an appropriate authority that
contains the description of the auditors responsibilities, rather than including this material in the
auditors report, provided that the description on the website addresses, and is not inconsistent with,
the description of the auditors responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances Under section 143(3)(i) of the Companies
Act, 2013, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the ability of the Group and its
associates and jointly controlled entities to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditors report. However, future events or conditions may cause the
Group and its associates and jointly controlled entities to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group and its associates and jointly controlled entities to express
an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the audit of the financial statements of such entities included in
33
 the consolidated financial statements of which we are the independent auditors. For the other
entities included in the consolidated financial statements, which have been audited by other
auditors, such other auditors remain responsible for the direction, supervision and performance
of the audits carried out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other
entities included in the consolidated financial statements of which we are the independent auditors
regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditors report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.

Other Matters
(a) We did not audit the financial statements / financial information of ______ subsidiaries, and
______ jointly controlled entities, whose financial statements / financial information reflect total
assets of Rs.______ as at 31st March, 20XX, total revenues of Rs._______ and net cash flows
amounting to Rs.______ for the year ended on that date, as considered in the consolidated
financial statements. The consolidated financial statements also include the Groups share of net
profit/loss of Rs. _____ for the year ended 31st March, 20XX, as considered in the consolidated
financial statements, in respect of ____associates, whose financial statements / financial
information have not been audited by us. These financial statements / financial information have
been audited by other auditors whose reports have been furnished to us by the Management and
our opinion on the consolidated financial statements, in so far as it relates to the amounts and
disclosures included in respect of these subsidiaries, jointly controlled entities and associates,
and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, insofar as it relates
to the aforesaid subsidiaries, jointly controlled entities and associates, is based solely on the
reports of the other auditors.
(b) We did not audit the financial statements / financial information of ______ subsidiaries and
______ jointly controlled entities, whose financial statements / financial information reflect total
assets of Rs.______ as at 31st March, 20XX, total revenues of Rs._______ and net cash flows
amounting to Rs.______ for the year ended on that date, as considered in the consolidated
financial statements. The consolidated financial statements also include the Groups share of net
profit/loss of Rs. _____ for the year ended 31st March, 20XX, as considered in the consolidated
financial statements, in respect of ____associates, whose financial statements / financial
information have not been audited by us. These financial statements / financial information are
unaudited and have been furnished to us by the Management and our opinion on the
consolidated financial statements, in so far as it relates to the amounts and disclosures included
in respect of these subsidiaries, jointly controlled entities and associates, and our report in terms
of sub-sections (3) and (11) of Section 143 of the Act in so far as it relates to the aforesaid
subsidiaries, jointly controlled entities and associates, is based solely on such unaudited financial
34
 statements / financial information. In our opinion and according to the information and
explanations given to us by the Management, these financial statements / financial information
are not material to the Group.
Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory
Requirements below, is not modified in respect of the above matters with respect to our reliance on
the work done and the reports of the other auditors and the financial statements / financial information
certified by the Management.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated
financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid
consolidated financial statements have been kept so far as it appears from our examination of
those books and the reports of the other auditors.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the
Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant
books of account maintained for the purpose of preparation of the consolidated financial
statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting
Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Holding Company as
on 31st March, 20XX taken on record by the Board of Directors of the Holding Company and the
reports of the statutory auditors of its subsidiary companies, associate companies and jointly
controlled companies incorporated in India, none of the directors of the Group companies, its
associate companies and jointly controlled companies incorporated in India is disqualified as on
31st March, 20XX from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of internal financial controls over financial reporting of the Group
and the operating effectiveness of such controls, refer to our separate report in Annexure.
(g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. The consolidated financial statements disclose the impact of pending litigations on the
consolidated financial position of the Group, its associates and jointly controlled entities Refer
Note XX to the consolidated financial statements.
Or
There were no pending litigations which would impact the consolidated financial position of the
Group, its associates and jointly controlled entities.17
ii. Provision has been made in the consolidated financial statements, as required under the
applicable law or accounting standards, for material foreseeable losses, if any, on long-term
contracts including derivative contracts Refer (a) Note XX to the consolidated financial

17
Where applicable.
35
 statements in respect of such items as it relates to the Group, its associates and jointly controlled
entities and (b) the Groups share of net profit/loss in respect of its associates.
Or
The Group, its associates and jointly controlled entities did not have any material foreseeable
losses on long-term contracts including derivative contracts.18
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Holding Company and its subsidiary companies, associate
companies and jointly controlled companies incorporated in India.
Or
Following are the instances of delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Holding Company, and its subsidiary companies,
associate companies and jointly controlled companies incorporated in India19.
Or
There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Holding Company, and its subsidiary companies, associate companies
and jointly controlled companies incorporated in India20.

Place of Signature: For XYZ & Co

Date: Chartered Accountants
(Firms Registration No.)

Signature
(Name of the Member Signing the Audit Report)
(Designation21)
(Membership No. XXXX)

18
Where applicable.
19
Where applicable.
20
Where applicable.
21
Partner or Proprietor
36
Illustration 3 Auditors Report on Financial Statements of an Unlisted
Company Prepared in Accordance with a Fair Presentation Framework

For purposes of this illustrative auditors 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 entity 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 managements 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 entitys
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.
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 AUDITORS REPORT

To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements22
Opinion
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,
23
(statement of changes in equity) 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 re included the Returns for the year ended on that date audited by the branch

22
The sub-title Report on the Audit of the Financial Statements is unnecessary in circumstances when the second sub-title
Report on Other Legal and Regulatory Requirements is not applicable.
23
Where applicable.
37
auditors of the Companys branches located at (location of branches)]24.
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 Act 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 profit/loss, (changes in
equity)25 and its cash flows for the year ended on that date.
Basis for Opinion
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 Auditors 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.
Responsibility of Management for Stand Alone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (the Act) with respect to the preparation of these standalone that give a true
and fair view of the financial position, financial performance, (changes in equity)26 and cash flows of
the Company in accordance with the accounting principles generally accepted in India, including the
accounting Standards specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate implementation and maintenance of accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companys ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

24
Where applicable.
25
Where applicable
26
Where applicable.
38
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

Paragraph 40(b) of this SA explains that the shaded material below can be located in an Appendix to
the auditors report. Paragraph 40(c) explains that when law, regulation or the applicable auditing
standards expressly permit, reference can be made to a website of an appropriate authority that
contains the description of the auditors responsibilities, rather than including this material in the
auditors report, provided that the description on the website addresses, and is not inconsistent with,
the description of the auditors responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies
Act, 2013, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Companys ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors report to the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.

Other Matter
We did not audit the financial statements/ information of . (number) branches included in
39
the stand alone financial statements of the Company whose financial statements/financial information
st
reflect total assets of Rs. .. as at 31 march 20XX and the total revenue of Rs.
. For the year ended on that date, as considered in the standalone 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 branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 (the Order), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give
in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
As required by Section 143(3) of the Act, we report that:
We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
(a) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books [and proper returns adequate for the purposes
of our audit have been received from the branches not visited by us.27]
(b) [The reports on the accounts of the branch offices of the Company audited under Section 143 (8)
of the Act by branch auditors have been sent to us and have been properly dealt with by us in
preparing this report28.]
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by
this Report are in agreement with the books of account [and with the returns received from the
branches not visited by us29].
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 20XX
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,
20XX from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
Annexure A.
(g) With respect to the other matters to be included in the Auditors Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in
its financial statements Refer Note XX to the financial statements; [or the Company
does not have any pending litigations which would impact its financial position30]

27
Where applicable.
28
Where applicable.
29
Where applicable.
30
As may be applicable.
40
 ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts Refer Note XX to the financial statements; [or the Company did not
have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.31]
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company {or, following are the instances
of delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company or there were no amounts which were required to
be transferred to the Investor Education and Protection Fund by the Company32}.
For XYZ & Co
Chartered Accountants
(Firms Registration No.)

Signature
(Xxxxx X. Xxxx)
33
(Designation )
(Membership No. XXXXX)
Place of Signature:
Date:

31
As may be applicable.
32
As may be applicable.
33
Partner or Proprietor, as the case may be
41
Illustration 4 Auditors Report on Financial Statements of a Non Corporate
Entity Prepared in Accordance with a Fair Presentation Framework
For purposes of this illustrative auditors report, the following circumstances are assumed:
Audit of a complete set of financial statements of a non corporate entity 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 entity in accordance with the
Accounting Standards issued by the Institute of Chartered Accountants of India.
The terms of the audit engagement reflect the description of managements 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 are the Code of Ethics issued by
ICAI34.
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 entitys
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.
Those responsible for oversight of the financial statements differ from those responsible for
the preparation of the financial statements.
The auditor has no other reporting responsibilities required under local law.
The auditor elects to refer to the description of the auditors responsibility included on a
website of an appropriate authority.

INDEPENDENT AUDITORS REPORT

To the Partners of ABC & Associates Company [or Other Appropriate Addressee]
Opinion
We have audited the financial statements of ABC & Associates (the entity), which comprise the
balance sheet at March 31st 20XX, and the profit and loss account, (and statement of cash flows)35 for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position
of the entity as at March 31, 20XX, and of its financial performance (and its cash flows)36 for the year
then ended in accordance with the Accounting Standards issued by the Institute of Chartered
Accountants of India (ICAI).
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our
responsibilities under those standards are further described in the Auditors Responsibilities for the

34
Specify any applicable ethical requirements under the relevant laws or regulations applicable to the entity.
35
Where applicable.
36
Where applicable
42
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the ethical requirements that are relevant to our audit of the financial statements in
[jurisdiction], 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 opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements37
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the aforesaid Accounting Standards, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the entitys ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the entity or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the entitys financial reporting
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
A further description of the auditors responsibilities for the audit of the financial is located at
[Organizations] website at: [website link].This description forms part of our auditors report.
For XYZ & Co
Chartered Accountants
(Firms Registration No.)

Signature
(Xxxxx X. Xxxx)
(Designation38)
(Membership No. XXXXX)
Place of Signature:
Date:

37
Or other terms that are appropriate in the context of the legal framework of the particular entity.
38
Partner or Proprietor, as the case may be
43
Illustration 5 Auditors Report on Financial Statements of Non Corporate
Entity Prepared in Accordance with a General Purpose Compliance Framework
For purposes of this illustrative auditors report, the following circumstances are assumed:
Audit of a complete set of financial statements of an entity, other than a listed company under
the Companies Act 2013, required by law or regulation. The audit is not a group audit (i.e., SA
600 does not apply).
The financial statements are prepared by management of the entity in accordance with the
Financial Reporting Framework (XYZ Laws) of Jurisdiction X (that is, a financial reporting
framework, encompassing law or regulation, designed to meet the common financial
information needs of a wide range of users, but which is not a fair presentation framework).
The terms of the audit engagement reflect the description of managements 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 are those of the jurisdiction.
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 entitys
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.
Those responsible for oversight of the financial statements differ from those responsible for
the preparation of the financial statements.
The auditor has no other reporting responsibilities required under local law.
INDEPENDENT AUDITORS REPORT
[Appropriate Addressee]
Opinion
We have audited the financial statements of ABC & Associates (the entity), which comprise the
balance sheet as at March 31, 20X1, and the Profit and Loss Account (and the cash flow statement)39
for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying financial statements of the entity are prepared, in all material
respects, in accordance with XYZ Laws.
Basis for Opinion
We conducted our audit in accordance with Standards on Auditing (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the entity in accordance with the ethical
requirements that are relevant to our audit of the financial statements, and we have fulfilled our other
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 opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
40
Statements
Management is responsible for the preparation of the financial statements in accordance with XYZ
Law and for such internal control as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.

39
Where applicable.
40
Or other terms that are appropriate in the context of the legal framework of the particular entity.
44
In preparing the financial statements, management is responsible for assessing the entitys ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the entity or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the entitys financial reporting
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Paragraph 40(b) of this SA explains that the shaded material below can be located in an Appendix to
the auditors report. Paragraph 40(c) explains that when law, regulation or national auditing standards
expressly permit, reference can be made to a website of an appropriate authority that contains the
description of the auditors responsibilities, rather than including this material in the auditors report,
provided that the description on the website addresses, and is not inconsistent with, the description of
the auditors responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entitys internal control.41
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the entitys ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditors report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors report. However, future events or conditions
may cause the entity to cease to continue as a going concern.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.

41
This sentence would be modified, as appropriate, in circumstances when the auditor also has responsibility to issue an
opinion on the effectiveness of internal control in conjunction with the audit of the financial statements.
45
 For XYZ & Co
Chartered Accountants
(Firms Registration No.)

Signature
(Xxxxx X. Xxxx)
42
(Designation )
(Membership No. XXXXX)
Place of Signature:
Date:

42
Partner or Proprietor, as the case may be
46