ISA 700 (Revised) — Forming an Opinion and Reporting on Financial Statements

ISA 700 (Revised) DEALS with the auditor’s responsibility to FORM an opinion on the Financial Statements.

Table of Contents

ISA 700 (Revised) – Introduction
- 1. Scope of this ISA
- 2. Effective Date
ISA 700 – Objectives
ISA 700 – Definitions
- 1. General Purpose Financial Statements
- 2. Unmodified Opinion
ISA 700 – Requirements
Synopsis

ISA 700 (Revised) – Introduction

1. Scope of this ISA

It deals with the form and content of the auditor’s report issued as a result of an ‘audit’ of Financial Statements.

2. Effective Date

This ISA is EFFECTIVE for audits of financial statements for periods ending on or after December 15, 2016.

ISA 700 – Objectives

The Objectives of the ‘Auditor’ are:

To FORM an opinion on the Financial Statements based on an evaluation of the conclusions drawn from the audit evidence obtained; AND
To EXPRESS clearly that opinion through a written report.

ISA 700 – Definitions

1. General Purpose Financial Statements

Financial Statements prepared in accordance with a ‘General Purpose Framework‘.

2. Unmodified Opinion

The Opinion expressed by the ‘Auditor’ when the auditor concludes that the Financial Statements are PREPARED in all Material respects in accordance with the applicable financial reporting framework.

ISA 700 – Requirements

1. Forming an Opinion on the Financial Statements

The ‘Auditor’ shall FORM an opinion on whether the Financial Statements are prepared in all Material respects in accordance with the applicable financial reporting framework.

2. Form of Opinion

The ‘Auditor’ shall EXPRESS an ‘UNMODIFIED’ opinion when the auditor concludes that the Financial Statements are prepared in all Material respects in accordance with the applicable financial reporting framework.

If the Auditor:
(a) Concludes that based on the audit evidence obtained the ‘Financial Statements’ as a whole are Not free from Material Misstatement; OR
(b) Is unable to obtain sufficient appropriate audit evidence to conclude that the ‘Financial Statements’ as a whole are free from Material Misstatement.

the ‘Auditor’ shall MODIFY the opinion in the auditor’s report in accordance with ISA 705 (Revised).

3. Auditor’s Report

The Auditor’s report shall be in WRITING.

3.1 Auditor’s Report for Audits Conducted in Accordance with International Standards on Auditing

(a) Title

(b) Addressee

(d) Basis for Opinion

(e) Going Concern

(g) Key Audit Matters

(h) Other Information

(i) Responsibilities for the Financial Statements

(j) Auditor’s Responsibilities for the Audit of the Financial Statements

(k) Location of the Description of the Auditor’s Responsibilities for the Audit of the Financial Statements

(l) Other Reporting Responsibilities

(m) Name of the Engagement Partner

(n) Signature of the Auditor

(o) Auditor’s Address

(p) Date of the Auditor’s Report

4. Supplementary Information Presented with the Financial Statements

The ‘Auditor’ shall EVALUATE whether in the auditor’s ‘Professional Judgment‘, Supplementary Information is Nevertheless an INTEGRAL part of the financial statements.

When it is an Integral Part, the supplementary information shall be COVERED by the auditor’s opinion.

Synopsis

ISA 700 ‘Forming an Opinion and Reporting on Financial Statements‘ DEALS with the auditor’s responsibility to form an opinion on the Financial Statements.

[700-799] Audit Conclusions and Reporting