Core concepts
- 01SA 700 — Forming opinion & reporting on FS.
- 02SA 701 — Key Audit Matters (KAM) — for listed entities.
- 03SA 705 — Modifications: qualified, adverse, disclaimer.
- 04SA 706 — Emphasis of Matter & Other Matter paragraphs.
- 05SA 720 — Other Information; CARO 2020 reporting.
Flowchart
Modified Opinion Decision | Misstatement? -- Material but not pervasive --> Qualified Material and pervasive --> Adverse | Unable to obtain evidence? -- Mat not perv --> Qualified Mat & perv --> Disclaimer
Exam-critical pointers
- ⭐KAM ≠ Modification — KAM is matter of most significance, not modification.
- ⭐CARO 2020 — 21 clauses; certain companies (banking, insurance, OPC, small co, etc.) exempt.
- ⭐EoM cannot be used as substitute for required modification.
- ⭐Auditor's report dated not earlier than the date of approval of FS by management.
Make it click