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ISA 700 Forming an Opinion and Reporting on Financial Statements requires auditors to produce an audit report. This report should contain a number of consistent elements so that users are able to understand what the audit report means.
Required:
1. Describe the content to be found in the any FOUR (4) components of an auditor’s unmodified report,and explain the purpose of each.
2. Based on the provisions of ISA 700 Forming an Opinion and Reporting on Financial Statements, outline (i) the TWO (2) areas of management responsibilities and (ii) the auditor’s responsibility which should be clearly set out in the audit report.
3. The auditor is required to state the set of laws and regulations which it complied with in conducting the audit. Explain why it is important to disclose this information and the possible consequence of non-disclosure of this information.
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