In 2016, ICAI issued the revised auditor’s reporting standards i.e. Revised SA 700 –‘Forming an Opinion and Reporting on Financial Statements’, Revised SA 705 – ‘Modifications to the Opinion in the Independent Auditor’s Report’and Revised SA 706 – ‘Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report’. These standards have prescribed new formats of audit reports and have completely changed the manner of auditor’s reporting. These standards are effective for audits of financial statements for periods beginning on or after April 1, 2018. In view of the comprehensive changes which have been made by these standards, a need was felt to provide guidance to the members on these standards so that they can discharge their reporting responsibilities under these standards effectively.
Continuing with its efforts to issue Implementation Guides on various Standards on Auditing (SA) for the benefit of our members, the Auditing and Assurance Standards Board of ICAI has brought out this revised edition of the “Implementation Guide on Reporting Standards (Revised SA 700, Revised SA 705 and Revised SA 706)”whose first edition was issued in 2010. The Implementation Guide has been written in an easy to understand lucid language in the form of frequently asked questions (FAQs) and is quite comprehensive.