Auditor’s Report on Consolidated Financial Statements, While reporting on the combined financial declarations (CFS) of a company under the Business Act 2013, the auditors may look for assistance from the illustrative formats of the auditor’s report on standalone financial statements of a business as provided by the Auditing and Assurance Standards Board (herein after referred as AASB) of the ICAI and amend the same accordingly.
For reporting in regard of the arrangements of section 143( 3) and area 143(11) of the Business Act, 2013, the auditors are recommended to think about the observations/ comments and draw ideal reference to negative remarks, if any, as reported by the element auditors. The auditors of CFS are also suggested to apply the idea of materiality and professional judgment as provided in the Standards on Audit.
To provide guidance on how an auditors’ report on CFS may be prepared, the AASB of ICAI has released some illustrative formats on the exact same covering some of the clauses of section 143( 3) of the Business Act,2013 These formats might be looked for the Financial Year 2014-15 and onwards till more statement. It is hereby pointed out once again that the auditors of CFS may suitably change these formats to match the scenarios of their audit engagement.
Illustration: Unmodified Viewpoint on the Consolidated Financial Statements
The following illustrative format is based on the assumptions that: The Group has-
- Specific components which have actually been examined by auditor/s besides the Principal Auditor and such component/s is/ are material to the combined financial declarations of the Group. The auditors of such elements which are Indian business, there is no requirement to report on area 143( 3 )( i) of the Business Act, 2013 and they did not have any matter to report under area 143( 3 )( f) of the Business Act, 2013.
- Particular elements which are unaudited and such component/s is/ are not material to the combined monetary statements of the Group. The independent auditor of Consolidated Financial Statements-
- Provides an Unmodified Viewpoint on the consolidated financial declarations.
- Disclosed the aforementioned facts about the Elements in the “Other Matters” Paragraph in accordance with the Statement released by the Auditing and Assurance Standards Board under the authority of the Council of ICAI in February 2014.
- Does not have the duty to report on internal monetary controls pursuant to area 143( 3 )( i) of the Companies Act 2013.
ILLUSTRATIVE FORMAT OF INDEPENDENT AUDITOR’S REPORT ON THE COMBINED FINANCIAL STATEMENTS OF A GROUP UNDER THE COMPANIES ACT, 2013 AND THE GUIDELINES THEREUNDER
Click Here to Download Illustrative Format for Auditors repost in Word Format
Format of Auditor Report on Consolidated Financial Statements
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