Minor, Michelle G. BSA-3 AC 516 9:00-12:00 pm TTh

Philippine Standard on Auditing 700 (Redrafted)

THE INDEPENDENT AUDITOR’S REPORT ON A COMPLETE SET OF GENERAL PURPOSE FINANCIAL STATEMENTS

Scope

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

Objectives

The objectives of the auditor are to: (a) Form an opinion on the FS based on an evaluation of the conclusions drawn from the audit evidence obtained; and (b) Express clearly that opinion through a written report that also describes the basis for the opinion.

Forming an Opinion on the FS

- The auditor shall form an opinion on whether the FS are prepared, in all material respects, in accordance with the AFRF.- The auditor shall conclude as to whether the auditor has obtained reasonable assurance about whether the FS as a whole are free from MM, whether due to fraud or error.

Form of Opinion

- The auditor shall express an unmodified opinion when the auditor concludes that the FS are prepared, in all material respects, in accordance with the AFRF. - If the auditor:

(a) concludes that the FS as a whole are not free from MM; or

(b) is unable to obtain sufficient appropriate audit evidence to conclude that the FS as a whole are free from MM, the auditor shall modify the opinion in the auditor’s report

Auditor’s Report

The auditor’s report shall be in writing and contain the ff:-Title-Addressee-Introductory Paragraph-Management’s Responsibility for the FS-Auditor’s Responsibility -Auditor’s Opinion -Other Reporting Responsibilities-Signature of the Auditor-Date of the Auditor’s Report -Auditor’s Address