INTERNATIONAL STANDARD ON AUDITING 700 (REVISED)

FORMING AN OPINION AND REPORTING ON FINANCIAL STATEMENTS

Scope of this ISA

This  International  Standard  on  Auditing  (ISA)  deals  with  the  auditor’s  responsibility  to  form  an  opinion  on  the  financial  statements.  It  also  deals  with  the  form  and  content  of  the  auditor’s  report  issued as a result of an audit of financial statements.

ISA  701  deals  with  the  auditor’s  responsibility  to  communicate  key  audit  matters  in  the  auditor’s  report.  ISA  705 (Revised)  and  ISA  706  (Revised)  deal  with  how  the  form  and  content  of  the  auditor’s  report  are  affected  when  the  auditor  expresses  a  modified  opinion  or  includes  an  Emphasis of Matter paragraph or an Other Matter paragraph in the auditor’s report. Other ISAs also contain reporting requirements that are applicable when issuing an auditor’s report.

INTERNATIONAL STANDARD ON AUDITING 705 (REVISED)

MODIFICATIONS TO THE OPINION IN THE INDEPENDENT

AUDITOR’S REPORT

Scope of this ISA

This  International  Standard  on  Auditing  (ISA)  deals  with  the  auditor’s  responsibility  to  issue  an  appropriate  report  in  circumstances  when,  in  forming  an  opinion  in  accordance  with  ISA  700  (Revised),  the  auditor  concludes  that  a  modification  to  the  auditor’s  opinion  on  the  financial  statements is necessary.

This ISA also deals with how the form and content of the auditor’s report is affected when the auditor expresses a modified opinion. In all cases, the reporting requirements in ISA 700 (Revised) apply, and are not repeated in this ISA unless they are explicitly addressed or amended by the requirements of this ISA.