This document discusses auditing standards AS 700 which deals with an auditor's responsibility to form an opinion on financial statements and the format and content of the auditor's report. It outlines the requirements for forming an opinion such as evaluating significant accounting policies, consistency of policies, reasonable estimates, relevant and reliable information, and adequate disclosures. The auditor issues an unmodified opinion if financial statements are properly prepared, and a modified opinion according to SA 705 if not. The structure of the auditor's report includes sections for title, addressee, introductions, management and auditor responsibilities, opinion, signature, date and place.

1. Standards of auditing
AS 700
Presented by :- Arpit Daga
B.Com (Hons.)

2. INTRODUCTION
 This standard deals with the auditors’ responsibility to form an opinion on the financial
statements and the form and content of the Auditors’Report.
 AS 705 and 706 deal with form and content of modified opinion and emphasis of matter
paragraph or other matter paragraph.

3. REQUIREMENTS OF FORMING AN
OPINION
 Auditors’evaluation include the following:
 Significant accounting policiesapplied
 Consistency of those policies
 Reasonable estimates are used by the management
 Information presented is relevant, reliable, comparable andunderstandable
 Disclosures are adequate to enable users to understand the effect of material
• transactions
 Terminology used isappropriate

4. Form of opinion
 When the auditors concludes that the financial statements are prepared, in all material
respects, in accordance the applicable financial reporting framework, they give a expert
opinion.
 If the auditorconcludes that the FS are NOT properly prepared or there is a shortage of
evidences then he shall issue a modified opinion in accordance with SA 705.

5. STRUCTURE OF THE AUDITORS’
REPORT
 Title
 Addressee
 Introductory paragraph
 Management Responsibility Paragraph
 Auditors’ Responsibility Paragraph
 Opinion Paragraph
 Auditors’ Signature
 Date
 Place