ISA 700

Question 1

what is ISA 700?

Answer 1

ISA 700 deals with audit of complete set of General purpose Financial statement.
If F/s are special perpose (ISA 800 applies).
If F/s are not complete set (ISA 805 applies).
If is is a sumary of F/s ,( ISA 810 applies).

Question 2

wat are the elements of Audit report?

Answer 2

there are 16 Elements of audit report:
1) Title ( Independent auditor’s report).
2) Adressee (Adress according to circumstances mainly sharholders and TCWG).
3) Opinion ( modified and unmodified).
4) Basis for opinion ( on which opinion is based)
5) Material uncertanity related to going concern( ISA 570).
6) Emphasis of matter paragraph ( ISA 706).
7) Key audit matter.(ISA 701)
8) Other information and auditor report thereon.(720)
9) Responsibility of Mgt and director for F/s.
10) Auditor responsibility.
11) Other reporting responsibilities.
12) Other matter paragraph (ISA 706).
13) Signature:
a) In name of audit firm.
b) In personal name.
c) Both.
14) Name ( in listed entities the name of engagment partner shoild be included unless there is personal threat).Loccal laws said that to include licence number.
15)** Date of auditor report **(should be on date on which auditor obtain sufficient appropriate audit evidence)
16) Auditor’s Adress (location of Auditor practice).

Question 3

What is supplementary information?

Answer 3

Suplimentary information is additional information which are not required by AFRF but presented with F/s.

Question 4

What are the Auditor’s responsibility about suplementry information?

Answer 4

IF sulimentary information is clearly differenciated it shall not be audited and treated as “other information”.
IF suplementary information is integral part of F/s.
A) It shall be audited or
B) Auditor shall state in audit report that it not audited.

Question 5

How can we differenciate the suplemetary information.

Answer 5

1) By removing cross reference with F/s.
2) By placing it outside F/s.
3) By placing it at the end of audit report that is not audited.

Question 6

What is AFRF( Applicable Financial Reporting Framework)?

Answer 6

AFRF means basis on which management has prepared F/s. It should be adequately described in F/s.