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Qualified audit report

Stat Audit 1858 views 3 replies

Shashi Kiran

CA Final

60 Points Joined July 2010

Hi...

In case of audit report, is it mandatory to end a qualified report with the opinion paragraph..? As per SA 706, emphasis para should be included after opinion para. So the audit report ends with emphasis matter paragraph and not the opinion para. Is it ok, or is there any requirement that the report should end with opinion para only???

Replies (3)

Sonam Bidasaria

770 Points Joined July 2008

Para 7 of the SA-706 clearly states that

When the auditor includes an Emphasis of Matter paragraph in the auditor’s report, the auditor shall Include it immediately after the Opinion paragraph in the auditor’s report.

And Independent Audit Report is ending with the reporting requirement laid down in Sec 227(3) of Companies Act, 1956.