Group 12: Audit Report

Correct answer B: Actual policy application and disclosures under the applicable framework, not permission alone.

SA 700 paragraphs 12-15 require qualitative, policy and disclosure evaluation; permission alone does not establish proper application.

Correct answer C: Use the opinion formulation appropriate to the actual framework.

SA 700 paragraphs 25-27 distinguish fair-presentation and compliance wording with applicable framework reference.

Correct answer B: Consider aggregate materiality in forming the opinion, not each item only in isolation.

SA 700 paragraph 11(b) incorporates individual or aggregate materiality of uncorrected misstatements; evidence and other evaluations also matter.

Correct answer D: Include the required ethics/independence statement referring to ICAI Code of Ethics.

SA 700 paragraph 28(c) specifies this basis statement; it does not determine the opinion type alone.

Correct answer B: Adverse opinion.

SA 705 paragraphs 5(a)(iii)/8 address fundamental disclosure pervasiveness and known material pervasive misstatement.

Correct answer C: Use except for the effects for the known-misstatement qualification.

SA 705 paragraph 17 reserves possible-effects wording for evidence inability; the supplied known branch is effects.

Correct answer A: Disclaim the opinion under the specified branch.

SA 705 paragraph 13(b)(ii) governs this supplied impossibility; paragraph 13(b)(i) withdrawal is conditional.

Correct answer D: Do not include that contradictory unmodified opinion in the same report.

SA 705 paragraph 15 prohibits the contradiction in the same report; it distinguishes a separately engaged element audit.

Correct answer A: Remove the KAM section under the applicable disclaimer restriction.

SA 705 paragraph 29/SA 701 paragraph 5 prohibit this section absent the legal requirement; report sections do not redefine the opinion.

Correct answer D: No; SA 701 also applies when KAM reporting is required by law/regulation.

SA 701 paragraph 5 extends scope to legal requirements and otherwise-decided communication; selection requirements still apply.

Correct answer D: It is not automatically a KAM solely from high uncertainty; apply the most-significance selection judgment.

SA 701 paragraphs 9-10 use significant attention factors and narrowing most-significance assessment.

Correct answer A: The law/regulation preclusion branch, with supported rationale and applicable communication/documentation.

SA 701 paragraph 14(a) differs from the rare adverse-consequences branch; paragraph 18(c) documents actual omission rationale.

Correct answer D: A statement to that effect in a separate Key Audit Matters section.

SA 701 paragraph 16 specifies the statement in this circumstance; paragraph 18 records the supported determination.

Correct answer A: Report under SA 570 and reference the MURGC section rather than ordinary duplicate KAM description.

SA 701 paragraph 15 governs by-nature interaction; KAM is not substitute for the required SA 570 section.

Correct answer A: EOM refers only to presented/disclosed information with a clear relevant disclosure reference.

SA 706 paragraph 9(b) defines the content boundary; assess any actual disclosure/report issue separately.

Correct answer B: EOM is not a substitute for the specified SA 570 reporting.

SA 706 A 7(c) expressly preserves going-concern reporting requirements.

Correct answer A: The OM condition is not met; respect the actual legal prohibition.

SA 706 paragraph 10(a) makes lawful communication a condition; changing headings is not a bypass.

Correct answer D: Communicate the expectation and wording to governance.

SA 706 paragraph 12 specifically requires expectation and wording communication, not an opinion transfer.

Correct answer D: Substantive reasons for the different opinion in an Other Matter paragraph.

SA 710 paragraph 16 covers this own-prior-opinion situation with OM reasons, not automatic immutability.

Correct answer C: Qualified or adverse as appropriate with respect to corresponding figures.

SA 710 paragraph 12 specifies the response; precise type depends on appropriate actual reporting assessment.

Correct answer C: Paragraph 17 predecessor-OM information has its stated revised-report exception.

SA 710 paragraph 17 states this exception; report scope and actual revised information must be evaluated.

Correct answer A: The unaudited OM statement does not relieve required opening-balance evidence work.

SA 710 paragraph 19 preserves the evidence requirement just as paragraph 14 does for corresponding figures.

Correct answer D: No; the procedures should be considered for the material aggregate.

India SA 600 paragraph 4 expressly distinguishes individual and combined materiality.

Correct answer B: Consider professional competence in the context of the specific assignment.

India SA 600 paragraph 11 specifies the conditional competence consideration; non-membership alone is not a conclusion.

Correct answer B: Qualified opinion or disclaimer for the scope limitation, as appropriate to assessed implications.

India SA 600 paragraph 22 addresses unusable work plus insufficient additional procedures; apply relevant materiality/pervasiveness reporting considerations.

Correct answer C: No; paragraph 24 expressly has that suspicion exception.

India SA 600 paragraph 24 retains this boundary alongside principal procedures; it is not automatic fraud proof.

Correct answer C: All joint auditors sign the allocation document and communicate it to governance.

SA 299 paragraph 12 specifies signed allocation and governance communication; preparation is not delivery.

Correct answer C: Shared appropriateness of agreed decisions versus individual proper execution responsibility.

SA 299 paragraphs 13-14/A 4 distinguish these responsibilities; actual execution remains the concerned auditor duty.

Correct answer C: No; the specified entitlement to assume other work does not require that routine cross-review/retesting.

SA 299 paragraph 18 states the entitlement; paragraph 15 coordination and known relevant matters still require their proper treatment.

Correct answer B: Discuss conclusions and communicate required modification/matter expectation wording to governance.

SA 299 paragraphs 20-21 require discussion and applicable governance communication; references do not cure opinion issues.