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Purpose of Auditing Report
Purpose of Auditing Report
Unmodified – the opinion that is expressed when the auditor concludes that the financial
statements are presented fairly, in all material respects, in accordance with the
applicable financial reporting framework.
- What is the ISA 700?
International Standard on Auditing (ISA) 700 (Revised), Forming an Opinion and
Reporting on Financial Statements. This ISA applies to an audit of a complete set of
general-purpose financial statements. ISA 700 (Revised) is effective for audits of
financial statements for periods ending on or after December 15, 2016.
3. ISA 705
ISA 705 requires that where the auditor concludes that, based on the audit evidence in
their possession, the financial statements are not free from material misstatement, or
where the auditor is unable to obtain sufficient appropriate audit evidence, the opinion
expressed by the auditor is to be modified [ISA705.
4. ISA706
ISA 706 (Revised) deals with the auditor's responsibility to communicate with those
charged with governance in an audit of financial statements. ISA 706 (Revised) is
effective for audits of financial statements for periods ending on or after December 15,
2016.
5. The impact of going concern on audit report: ISA 570
In effect, an entity that does not meet the threshold for that exception is described as a
going concern. This requirement applies even when there are uncertainties about
events or conditions that may cast significant doubt upon the entity's ability to continue
as a going concern in the future.