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Microlesson · 5-min read

SA-700: Auditor's Report — Signature, UDIN, Date, Place & LRR

## SA-700: Auditor's Report — Signature, UDIN, Date, Place & LRR

### Auditor's Responsibilities (Key Points)

1. Exercise professional judgment

2. Maintain professional skepticism

3. Identify and assess Risk of Material Misstatement (RMM)

4. Design audit procedures

5. Obtain Sufficient & Appropriate (S&A) evidence as basis for opinion

6. Understand internal controls for designing procedures

7. Evaluate appropriateness of accounting policies

8. Ensure reasonableness of accounting estimates

9. Conclude on going concern; determine if material uncertainty exists

10. Evaluate presentation, structure and content of financial statements

11. (SA-600) Address division of responsibility for component financial information audited by other auditors

### Communication with TCWG

Auditor communicates:

  • Planned scope & timing of audit
  • Significant audit findings
  • Significant deficiency in Internal Control System

For listed entities additionally: Provide a statement to TCWG confirming:

  • Auditor has complied with ethical requirements regarding independence
  • All relationships bearing on independence have been communicated

### Signature of Auditor

ElementPartnership/FirmProprietorship Firm
NameName of firmName of member
RegistrationFirm registration number
Partner detailsName of partner + partner's signature (personal name AND firm name)
UDIN18-digit alphanumeric (mandatory)18-digit alphanumeric (mandatory)

UDIN (Unique Document Identification Number):

  • CAs with full-time Certificate of Practice can register on UDIN Portal
  • Generated for every certificate attested/certified
  • Must be mentioned with each audit report along with membership number

### Place

Specific location (ordinarily the city) where the report is signed.

### Date

Dated no earlier than the date on which the auditor has obtained sufficient and appropriate evidence on which the opinion is based.

### Report on Other Legal and Regulatory Requirements (LRR)

Auditor shall disclose other reporting responsibilities (beyond SA requirements) in a separate section headed "Report on Other Legal and Regulatory Requirements" — unless these responsibilities are similar to those required by SAs.

### Auditor's Report Prescribed by Law — 13 Required Elements

1. Title

2. Addressee

3. Opinion section

4. Identification of entity's financial statements audited

5. Statement of auditor's independence per ICAI ethical requirements

6. Section re SA-570 requirements

7. Basis for modified opinion (SA-705, if applicable)

8. Key Audit Matters section (SA-701, if applicable)

9. Management's responsibility for preparation of FS

10. Auditor's responsibilities for FS

11. Signature of auditor

12. Place of signature

13. Date of auditor's signature

Worked example

### Example 1

Q: CA Ram is a partner in ABC & Co., Chartered Accountants. What elements must his signature block contain on an audit report?

A: The signature block must include: (a) Name of the firm — "ABC & Co.", (b) Firm's registration number, (c) Name of the partner — "CA Ram", (d) Partner's signature in both personal capacity and on behalf of the firm, (e) Membership number, and (f) UDIN (18-digit alphanumeric). UDIN must be generated from the UDIN portal before/at the time of signing.

### Example 2

Q: On 31st March 2024, the auditor completed all audit work and formed his opinion. The audit report is dated 15th April 2024. Is this correct?

A: No. The audit report must be dated no earlier than the date on which S&A evidence was obtained. Here, evidence was obtained on 31st March — so the report can be dated 31st March or later. Dating it 15th April is permissible (it's after the evidence date). However, if the report were dated 20th March (before the evidence date), it would violate SA-700.

### Example 3

Q: For a listed company audit, what additional communication must the auditor provide to TCWG regarding independence?

A: For listed entities, the auditor must provide a written statement to TCWG confirming: (i) the auditor has complied with ethical requirements regarding independence, and (ii) all relationships and matters that may reasonably be thought to bear on independence have been communicated to TCWG.

⚠️ Common exam mistakes

  • Students often write that the report must be dated 'after' all evidence is obtained — the correct rule is 'no earlier than' (same date as evidence is acceptable).
  • Forgetting that for a proprietorship firm, the partner details and firm registration number are not required in the signature block — only member name, signature, membership number, and UDIN.
  • Confusing UDIN as optional — it is mandatory for every audit report and must accompany the membership number.
  • Missing the additional TCWG communication requirement for listed entities (independence statement) — this is separate from the standard three communications (scope, findings, ICS deficiency).
  • Writing 'Report on Other Legal Requirements' instead of the exact heading 'Report on Other Legal and Regulatory Requirements'.
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