ICAI has issued Implementation Guide on Revised SA 700, SA 705 and SA 706, in view of new formats of audit reports having been prescribed under these audit standards in 2016, effective from 01/04/2018, as under:
The scope of this Implementation Guide is limited to ‘Revised SA 700: Forming an Opinion and Reporting on Financial Statements’, ‘Revised SA 705: Modifications to the Opinion in the Independent Auditor’s Report’ and ‘Revised SA 706: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report’, which deals with how to form an audit opinion, reach audit conclusions and issue different types of auditor’s reports.
These SAs are most important as they deal with the conclusion part of the audit processes, i.e. the auditor’s report/ opinion. They are crucial from an auditor’s risk perspective because they lay down the principles and procedures on how an auditor forms his opinion and the manner in which he communicates the opinion.