SA 810 Summary FS
Standard on Auditing (SA) 810(Revised)
Engagements to Report on Summary Financial Statements
Contents
Paragraph(s)
Introduction
Scope of this SA ......................................................................................................... 1
Effective Date ........................................................................................................... 2
Objectives ................................................................................................................. 3
Definitions ................................................................................................................. 4
Requirements
Engagement Acceptance ........................................................................................ 5-7
Nature of Procedures ................................................................................................. 8
Form of Opinion .................................................................................................. 9-11
Timing of Work and Events Subsequent to the Date of the
Auditor’s Report on the Audited Financial Statements ...................................... 12-13
Information in Documents Containing Summary Financial Statements .............. 14−15
Auditor’s Report on Summary Financial Statements ......................................... 16-21
Restriction on Distribution or Use or Alerting Readers to the
Basis of Accounting .................................................................................................. 22
Comparatives .................................................................................................... 23-24
Unaudited Supplementary Information Presented with Summary
Financial Statements ................................................................................................ 25
Other Considerations .......................................................................................... 26-27
Application and Other Explanatory Material
Engagement Acceptance ................................................................................... A1-A7
Evaluating the Availability of the Audited Financial Statements ...............................A8
Form of Opinion .....................................................................................................A9
Timing of Work and Events Subsequent to the Date of the
Auditor’s Report on the Audited Financial Statements .........................................A10
Information in Documents Containing Summary Financial Statements .......... A11-A16
Auditor’s Report on Summary Financial Statements .................................... A17-A23
Comparatives ............................................................................................... A24-A25
Unaudited Supplementary Information Presented with Summary
Financial Statements ..............................................................................................A26
Other Considerations ...........................................................................................A27
Material Modifications vis-a-vis ISA 810(Revised), “Engagements to Report on
Summary Financial Statements”
Appendix: Illustrations of Independent Auditor’s Reports on Summary Financial
Statements
Standard on Auditing (SA) 810(Revised), “Engagements to Report on Summary
Financial Statements” should be read in the context of the “Preface to the Standards
on Quality Control, Auditing, Review, Other Assurance and Related Services”, which
sets out the authority of SAs and SA 200, “Overall Objectives of the Independent
Auditor and the Conduct of an Audit in Accordance with Standards on Auditing”.
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Introduction
Scope of this SA
1. This Standard on Auditing (SA) deals with the auditor’s responsibilities when
undertaking an engagement to report on summary financial statements derived from
financial statements audited in accordance with SAs by that same auditor.
Effective Date
2. This SA is effective for engagements to report on summary financial statements
for periods beginning on or after April 1, 2024.
Objectives
3. The objectives of the auditor are:
(a) To determine whether it is appropriate to accept the engagement to report on
summary financial statements; and
(b) If engaged to report on summary financial statements:
(i) To form an opinion on the summary financial statements based on an
evaluation of the conclusions drawn from the evidence obtained; and
(ii) To express clearly that opinion through a written report that also describes
the basis for that opinion.
Definitions
4. For purposes of this SA, the following terms have the meanings attributed below:
(a) Applied criteria – The criteria applied by management in the preparation of the
summary financial statements.
(b) Audited financial statements – Financial statements1 audited by the auditor in
accordance with SAs, and from which the summary financial statements are
derived.
(c) Summary financial statements – Historical financial information that is derived
from financial statements but that contains less detail than the financial
statements, while still providing a structured representation consistent with that
provided by the financial statements of the entity’s economic resources or
obligations at a point in time or the changes therein for a period of time2.
Different laws and regulations may use different terminology to describe such
historical financial information.
Requirements
Engagement Acceptance
5. The auditor shall ordinarily accept an engagement to report on summary financial
statements in accordance with this SA only when the auditor has been engaged to
1 SA 200, paragraph 13(f).
2 SA 200, paragraph 13(f).
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conduct an audit in accordance with SAs of the financial statements from which the
summary financial statements are derived3. (Ref: Para. A1)
6. Before accepting an engagement to report on summary financial statements, the
auditor shall: (Ref: Para. A2)
(a) Determine whether the applied criteria are acceptable; (Ref: Para. A3-A7)
(b) Obtain the agreement of management that it acknowledges and understands its
responsibility:
i. For the preparation of the summary financial statements in accordance with
the applied criteria;
ii. To make the audited financial statements available to the intended users of
the summary financial statements without undue difficulty (or, if law or
regulation provides that the audited financial statements need not be made
available to the intended users of the summary financial statements and
establishes the criteria for the preparation of the summary financial
statements, to describe that law or regulation in the summary financial
statements); and
iii. To include the auditor’s report on the summary financial statements in any
document that contains the summary financial statements and that indicates
that the auditor has reported on them.
(c) Agree with management the form of opinion to be expressed on the summary
financial statements (see paragraphs 9-11).
7. If the auditor concludes that the applied criteria are unacceptable or is unable to
obtain the agreement of management set out in paragraph 6(b), the auditor shall not
accept the engagement to report on the summary financial statements, unless
required by law or regulation to do so. An engagement conducted in accordance with
such law or regulation does not comply with this SA. Accordingly, the auditor’s report
on the summary financial statements shall not indicate that the engagement was
conducted in accordance with this SA. The auditor shall include appropriate
reference to this fact in the terms of the engagement. The auditor shall also
determine the effect that this may have on the engagement to audit the financial
statements from which the summary financial statements are derived.
Nature of Procedures
8. The auditor shall perform the following procedures, and any other procedures
that the auditor may consider necessary, as the basis for the auditor’s opinion on the
summary financial statements:
(a) Evaluate whether the summary financial statements adequately disclose their
summarised nature and identify the audited financial statements.
3 In some cases, however, the auditor may be required by a law or a regulation governing the entity to report on
summary financial statements even for such accounting periods for which the former was not engaged to conduct
the audit in accordance with SAs of the financial statements pertaining to such accounting periods. For example,
in case of the report of the auditor of the company to be included in a prospectus as per requirements of the
SEBI(Issue of Capital and Disclosure Requirements) Regulations 2018, such auditor might not necessarily
have been the auditor of all or some of the financial statements of the company in respect of the accounting
periods relating to which financial information has been reported upon by him/ her in the aforementioned
report.
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(b) When summary financial statements are not accompanied by the audited
financial statements, evaluate whether they describe clearly:
(i) From whom or where the audited financial statements are available; or
(ii) The law or regulation that specifies that the audited financial statements
need not be made available to the intended users of the summary financial
statements and establishes the criteria for the preparation of the summary
financial statements.
(c) Evaluate whether the summary financial statements adequately disclose the
applied criteria.
(d) Compare the summary financial statements with the related information in the
audited financial statements to determine whether the summary financial
statements agree with or can be re-calculated from the related information in the
audited financial statements.
(e) Evaluate whether the summary financial statements are prepared in accordance
with the applied criteria.
(f) Evaluate, in view of the purpose of the summary financial statements, whether
the summary financial statements contain the information necessary, and are at
an appropriate level of aggregation, so as not to be misleading in the
circumstances.
(g) Evaluate whether the audited financial statements are available to the intended
users of the summary financial statements without undue difficulty, unless law or
regulation provides that they need not be made available and establishes the
criteria for the preparation of the summary financial statements. (Ref: Para. A8)
Form of Opinion
9. When the auditor has concluded that an unmodified opinion on the summary
financial statements is appropriate, the auditor’s opinion shall, unless otherwise
required by law or regulation, use one of the following phrases: (Ref: Para. A9)
(a) The accompanying summary financial statements are consistent, in all material
respects, with the audited financial statements, in accordance with [the applied
criteria]; or
(b) The accompanying summary financial statements are a fair summary of the
audited financial statements, in accordance with [the applied criteria].
10. If law or regulation prescribes the wording of the opinion on summary financial
statements in terms that are different from those described in paragraph 9, the
auditor shall:
(a) Apply the procedures described in paragraph 8 and any further procedures
necessary to enable the auditor to express the prescribed opinion; and
(b) Evaluate whether users of the summary financial statements might
misunderstand the auditor’s opinion on the summary financial statements and, if
so, whether additional explanation in the auditor’s report on the summary
financial statements can mitigate possible misunderstanding.
11. If, in the case of paragraph 10(b), the auditor concludes that additional
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explanation in the auditor’s report on the summary financial statements cannot
mitigate possible misunderstanding, the auditor shall not accept the engagement,
unless required by law or regulation to do so. An engagement conducted in
accordance with such law or regulation does not comply with this SA. Accordingly,
the auditor’s report on the summary financial statements shall not indicate that the
engagement was conducted in accordance with this SA.
Timing of Work and Events Subsequent to the Date of the Auditor’s
Report on the Audited Financial Statements
12. The auditor’s report on the summary financial statements may be dated later
than the date of the auditor’s report on the audited financial statements. In such
cases, the auditor’s report on the summary financial statements shall state that the
summary financial statements and the audited financial statements do not reflect the
effects of events that occurred subsequent to the date of the auditor’s report on the
audited financial statements. (Ref: Para. A10)
13. The auditor may become aware of facts that existed at the date of the auditor’s
report on the audited financial statements, but of which the auditor previously was
unaware. In such cases, the auditor shall not issue the auditor’s report on the
summary financial statements until the auditor’s consideration of such facts in
relation to the audited financial statements in accordance with SA 5604 has been
completed.
Information in Documents Containing Summary Financial Statements
14. The auditor shall read the information included in a document containing the
summary financial statements and the auditor’s report thereon and consider whether
there is a material inconsistency between that information and the summary financial
statements.
15. If the auditor identifies a material inconsistency, the auditor shall discuss the
matter with management and determine whether the summary financial statements
or the information included in the document containing the summary financial
statements and the auditor’s report thereon needs to be revised. If the auditor
determines that the information needs to be revised and management refuses to
revise the information as necessary, the auditor shall take appropriate action in the
circumstances, including considering the implications for the auditor’s report on the
summary financial statements. (Ref: Para. A11− A16)
Auditor’s Report on Summary Financial Statements
Elements of the Auditor’s Report
16. The auditor’s report on summary financial statements shall include the following
elements5: (Ref: Para. A23)
(a) A title clearly indicating it as the report of an independent auditor. (Ref: Para.
A17)
4 SA 560, “Subsequent Events”.
5 Paragraphs 19-20, which deal with circumstances where the auditor’s report on the audited financial
statements has been modified, require additional elements to those listed in this paragraph.
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(b) An addressee. (Ref: Para. A18)
(c) Identification of the summary financial statements on which the auditor is
reporting, including the title of each statement included in the summary financial
statements; (Ref: Para. A19)
(d) Identification of the audited financial statements;
(e) Subject to paragraph 20, a clear expression of an opinion. (see paragraphs 9-11)
(f) A statement indicating that the summary financial statements do not contain all
the disclosures required by the financial reporting framework applied in the
preparation of the audited financial statements, and that reading the summary
financial statements and the auditor’s report thereon is not a substitute for
reading the audited financial statements and the auditor’s report thereon.
(g) Where applicable, the statement required by paragraph 12.
(h) Reference to the auditor’s report on the audited financial statements, the date of
that report, and, subject to paragraphs 19-20, the fact that an unmodified opinion
is expressed on the audited financial statements;
(i) A description of management’s6 responsibility for the summary financial
statements, explaining that management7 is responsible for the preparation of the
summary financial statements in accordance with the applied criteria.
(j) A statement that the auditor is responsible for expressing an opinion, based on
the auditor’s procedures conducted in accordance with this SA, on whether the
summary financial statements are consistent, in all material respects, with [or are
a fair summary of] the audited financial statements.
(k) The auditor’s signature.
(l) The date of the auditor’s report. (Ref: Para. A20)
(m) The place of signature.
17. If the addressee of the summary financial statements is not the same as the
addressee of the auditor’s report on the audited financial statements, the auditor
shall evaluate the appropriateness of using a different addressee. (Ref: Para. A18)
18. The auditor shall date the auditor’s report on the summary financial statements
no earlier than: (Ref: Para. A20)
(a) The date on which the auditor has obtained sufficient appropriate evidence on
which to base the opinion, including evidence that the summary financial
statements have been prepared and those with the recognised authority have
asserted that they have taken responsibility for them; and
(b) The date of the auditor’s report on the audited financial statements.
6 Or other term that is appropriate in the context of the applicable law or regulation.
7 Or other term that is appropriate in the context of the applicable law or regulation.
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Reference to the Auditor’s Report on the Audited Financial Statements (Ref:
Para. A23)
19. When the auditor’s report on the audited financial statements includes:
(a) a qualified opinion in accordance with SA 705(Revised)8;
(b) an Emphasis of Matter paragraph, or an Other Matter paragraph in accordance
with SA 706(Revised)9;
(c) A Material Uncertainty Related to Going Concern section in accordance with SA
570(Revised);10
(d) Communication of key audit matters in accordance with SA 701;11 or
(e) A statement that describes an uncorrected material misstatement of the other
information in accordance with SA 720(Revised);12
and the auditor is satisfied that the summary financial statements are consistent, in
all material respects, with or are a fair summary of the audited financial statements,
in accordance with the applied criteria, the auditor’s report on the summary financial
statements shall, in addition to the elements in paragraph 16:
(i) State that the auditor’s report on the audited financial statements includes a
qualified opinion, an Emphasis of Matter paragraph, an Other Matter paragraph,
a Material Uncertainty Related to Going Concern section, communication of key
audit matters, or a statement that describes an uncorrected material
misstatement of the other information; and (Ref: Para. A21)
(ii) Describe: (Ref: Para A22)
(a) The basis for the qualified opinion on the audited financial statements and
the effect thereof, if any, on the summary financial statements;
(b) The matter referred to in the Emphasis of Matter paragraph or the Other
Matter paragraph or the Material Uncertainty Related to Going Concern
section in the auditor’s report on the audited financial statements; and the
effect(s) thereof, if any, on the summary financial statements; or
(c) The uncorrected material misstatement of the other information and the
effect(s) thereof, if any, on the information included in a document containing
the summary financial statements and the auditor’s report thereon. (Ref:
Para A15)
20. When the auditor’s report on the audited financial statements contains an
adverse opinion or a disclaimer of opinion, the auditor’s report on the summary
financial statements shall, in addition to the elements in paragraph 16:
(a) State that the auditor’s report on the audited financial statements contains an
adverse opinion or disclaimer of opinion;
8 SA 705(Revised), “Modifications to the Opinion in the Independent Auditor's Report”.
9 SA 706(Revised), “Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s
Report”.
10 SA 570(Revised), “Going Concern”, paragraph 22.
11 SA 701, “Communicating Key Audit Matters in the Independent Auditor’s Report”.
12 SA 720(Revised), “The Auditor’s Responsibilities Relating to Other Information”, paragraph 22(e)(ii).
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(b) Describe the basis for that adverse opinion or disclaimer of opinion; and
(c) State that, as a result of the adverse opinion or disclaimer of opinion on the
audited financial statements, it is inappropriate to express an opinion on the
summary financial statements. (Ref. Para A23)
Modified Opinion on the Summary Financial Statements
21. If the summary financial statements are not consistent, in all material respects,
with or are not a fair summary of the audited financial statements, in accordance with
the applied criteria, and management does not agree to make the necessary
changes, the auditor shall express an adverse opinion on the summary financial
statements. (Ref: Para. A23)
Restriction on Distribution or Use or Alerting Readers to the Basis of
Accounting
22. When distribution or use of the auditor’s report on the audited financial
statements is restricted, or the auditor’s report on the audited financial statements
alerts readers that the audited financial statements are prepared in accordance with
a special purpose framework, the auditor shall include a similar restriction or alert in
the auditor’s report on the summary financial statements.
Comparatives
23. If the audited financial statements contain comparatives, but the summary
financial statements do not, the auditor shall determine whether such omission is
reasonable in the circumstances of the engagement. The auditor shall determine the
effect of an unreasonable omission on the auditor’s report on the summary financial
statements. (Ref: Para. A24)
24. If the summary financial statements contain comparatives that were reported on
by another auditor, the auditor’s report on the summary financial statements shall
also contain the matters that SA 710 requires the auditor to include in the auditor’s
report on the audited financial statements13. (Ref: Para. A25)
Unaudited Supplementary Information Presented with Summary
Financial Statements
25. The auditor shall evaluate whether any unaudited supplementary information
presented with the summary financial statements is clearly differentiated from the
summary financial statements. If the auditor concludes that the entity’s presentation
of the unaudited supplementary information is not clearly differentiated from the
summary financial statements, the auditor shall ask management to change the
presentation of the unaudited supplementary information. If management refuses to
do so, the auditor shall explain in the auditor’s report on the summary financial
statements that such information is not covered by that report. (Ref: Para. A26)
Other Considerations
26. If the auditor becomes aware that the entity plans to state that the auditor has
13 SA 710, “Comparative Information—Corresponding Figures and Comparative Financial Statements”.
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reported on summary financial statements in a document containing the summary
financial statements, but does not plan to include the related auditor’s report, the
auditor shall request management to include the auditor’s report in the document. If
management does not do so, the auditor shall determine and carry out other
appropriate actions designed to prevent management from inappropriately
associating the auditor with the summary financial statements in that document. (Ref:
Para. A27)
27. The auditor may be engaged to report on the financial statements of an entity,
while not engaged to report on the summary financial statements. If, in this case, the
auditor becomes aware that the entity plans to make a statement in a document that
refers to the auditor and the fact that summary financial statements are derived from
the financial statements audited by the auditor, the auditor shall be satisfied that:
(a) The reference to the auditor is made in the context of the auditor’s report on the
audited financial statements; and
(b) The statement does not give the impression that the auditor has reported on the
summary financial statements.
If (a) or (b) are not met, the auditor shall request management to change the
statement to meet them, or not to refer to the auditor in the document. Alternatively,
the entity may engage the auditor to report on the summary financial statements and
include the related auditor’s report in the document. If management does not change
the statement, delete the reference to the auditor, or include an auditor’s report on
the summary financial statements in the document containing the summary financial
statements, the auditor shall advise management that the auditor disagrees with the
reference to the auditor, and the auditor shall determine and carry out other
appropriate actions designed to prevent management from inappropriately referring
to the auditor. (Ref: Para. A27)
***
Application and Other Explanatory Material
Engagement Acceptance (Ref: Para. 5-6)
A1. The audit of the financial statements from which the summary financial
statements are derived provides the auditor with the necessary knowledge to
discharge the auditor’s responsibilities in relation to the summary financial
statements in accordance with this SA. Application of this SA will not provide
sufficient appropriate evidence on which to base the opinion on the summary
financial statements if the auditor has not also audited the financial statements from
which the summary financial statements are derived.
A2. Management’s agreement with the matters described in paragraph 6 may be
evidenced by its written acceptance of the terms of the engagement.
Criteria (Ref: Para. 6(a))
A3. The preparation of summary financial statements requires management to
determine the information that needs to be reflected in the summary financial
statements so that they are consistent, in all material respects, with or represent a
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fair summary of the audited financial statements. Because summary financial
statements by their nature contain aggregated information and limited disclosure,
there is an increased risk that they may not contain the information necessary so as
not to be misleading in the circumstances. This risk increases when established
criteria for the preparation of summary financial statements do not exist.
A4. Factors that may affect the auditor’s determination of the acceptability of the
applied criteria include:
• The nature of the entity;
• The purpose of the summary financial statements;
• The information needs of the intended users of the summary financial statements;
and
• Whether the applied criteria will result in summary financial statements that are
not misleading in the circumstances.
A5. The criteria for the preparation of summary financial statements may be
established by an authorised or recognised standards setting organisation or by law
or regulation. Similar to the case of financial statements, as explained in SA 21014, in
many such cases, the auditor may presume that such criteria are acceptable.
A6. Where established criteria for the preparation of summary financial statements
do not exist, criteria may be developed by management, for example, based on
practice in a particular industry. Criteria that are acceptable in the circumstances will
result in summary financial statements that:
(a) Adequately disclose their summarised nature and identify the audited financial
statements;
(b) Clearly describe from whom or where the audited financial statements are
available or, if law or regulation provides that the audited financial statements
need not be made available to the intended users of the summary financial
statements and establishes the criteria for the preparation of the summary
financial statements, that law or regulation;
(c) Adequately disclose the applied criteria;
(d) Agree with or can be re-calculated from the related information in the audited
financial statements; and
(e) In view of the purpose of the summary financial statements, contain the
information necessary, and are at an appropriate level of aggregation, so as not
to be misleading in the circumstances.
A7. Adequate disclosure of the summarised nature of the summary financial
statements and the identity of the audited financial statements, as referred to in
paragraph A6(a), may, for example, be provided by a title such as “Summary
Financial Statements Prepared from the Audited Financial Statements for the Year
Ended March 31, 20XX”.
14 SA 210, “Agreeing the Terms of Audit Engagements”, paragraphs A3 and A8-A9.
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Evaluating the Availability of the Audited Financial Statements (Ref:
Para. 8(g))
A8. The auditor’s evaluation whether the audited financial statements are available to
the intended users of the summary financial statements without undue difficulty is
affected by factors such as whether:
• The summary financial statements describe clearly from whom or where the
audited financial statements are available;
• The audited financial statements are on public record; or
• Management has established a process by which the intended users of the
summary financial statements can obtain ready access to the audited financial
statements.
Form of Opinion (Ref: Para. 9)
A9. A conclusion, based on an evaluation of the evidence obtained by performing the
procedures in paragraph 8, that an unmodified opinion on the summary financial
statements is appropriate enables the auditor to express an opinion containing one of
the phrases in paragraph 9. The auditor’s decision as to which of the phrases to use
may be affected by generally accepted practice in the particular jurisdiction.
Timing of Work and Events Subsequent to the Date of the Auditor’s
Report on the Audited Financial Statements (Ref: Para. 12)
A10. The procedures described in paragraph 8 are often performed during or
immediately after the audit of the financial statements. When the auditor reports on
the summary financial statements after the completion of the audit of the financial
statements, the auditor is not required to obtain additional audit evidence on the
audited financial statements, or report on the effects of events that occurred
subsequent to the date of the auditor’s report on the audited financial statements
since the summary financial statements are derived from the audited financial
statements and do not update them.
Information in Documents Containing Summary Financial Statements
(Ref: Para. 14-15)
A11. SA 720(Revised) deals with the auditor’s responsibilities relating to other
information in an audit of financial statements. In the context of SA 720(Revised),
other information is financial or non-financial information (other than financial
statements and the auditor’s report thereon) included in an entity’s annual report. An
annual report contains or accompanies the financial statements and the auditor’s
report thereon.
A12. In contrast, paragraphs 14–15 deal with the auditor’s responsibilities relating to
information included in a document that also contains the summary financial
statements and the auditor’s report thereon. This information may include:
• Some or all of the same matters as those dealt with in the other information
included in the annual report (e.g., when the summary financial statements and
the auditor’s report thereon are included in a summary annual report); or
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• Matters that are not dealt with in the other information included in the annual
report.
A13. In reading the information included in a document containing the summary
financial statements and the auditor’s report thereon, the auditor may become aware
that such information is misleading and may need to take appropriate action.
Relevant ethical requirements15 require the auditor to avoid being knowingly
associated with information that the auditor believes contains a materially false or
misleading statement, statements or information provided negligently, or omits or
obscures required information where such omission or obscurity would be
misleading.
Information in a Document Containing the Summary Financial Statements that
Deals with Some or All of the Same Matters as the Other Information in the
Annual Report
A14. When information is included in a document containing the summary financial
statements and the auditor’s report thereon and that information deals with some or
all of the same matters as the other information included in the annual report, the
work performed on that other information in accordance with SA 720(Revised) may
be adequate for the purposes of paragraphs 14–15 of this SA.
A15. When an uncorrected material misstatement of the other information has been
identified in the auditor’s report on the audited financial statements and that
uncorrected material misstatement relates to a matter that is dealt with in the
information in a document containing the summary financial statements and the
auditor’s report thereon, a material inconsistency between the summary financial
statements and that information may exist or the information may be misleading.
Information in a Document Containing the Summary Financial Statements that
Deals with Matters Not Dealt with in the Other Information in the Annual Report
A16. SA 720(Revised), adapted as necessary in the circumstances, may be helpful
to the auditor in determining the appropriate action to respond to management’s
refusal to make necessary revisions to the information, including considering the
implications for the auditor’s report on the summary financial statements.
Auditor’s Report on Summary Financial Statements
Elements of the Auditor’s Report
Title (Ref: Para. 16(a))
A17. A title indicating the report is the report of an independent auditor, for
example, “Report of the Independent Auditor”, affirms that the auditor has met all of
the relevant ethical requirements regarding independence. This distinguishes the
report of the independent auditor from reports issued by others.
Addressee (Ref: Para. 16(b), 17)
A18. Factors that may affect the auditor’s evaluation of the appropriateness of the
addressee of the summary financial statements include the terms of the
15 Paragraph R111.2 of Volume-I of the Code of Ethics (Revised 2019).
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engagement, the nature of the entity, and the purpose of the summary financial
statements.
Identification of the Summary Financial Statements (Ref: Para. 16(c))
A19. When the auditor is aware that the summary financial statements will be
included in a document that contains information other than the summary financial
statements and the auditor’s report thereon, the auditor may consider, if the form of
presentation allows, identifying the page numbers on which the summary financial
statements are presented. This helps readers to identify the summary financial
statements to which the auditor’s report relates.
Date of the Auditor’s Report (Ref: Para. 16(l), 18)
A20. The person or persons with recognised authority to conclude that the
summary financial statements have been prepared and take responsibility for them
depend on the terms of the engagement, the nature of the entity, and the purpose of
the summary financial statements.
Reference to the Auditor’s Report on the Audited Financial Statements (Ref: Para.
19)
A21. Paragraph 19(i) of this SA requires the auditor to include a statement in the
auditor’s report on the summary financial statements when the auditor’s report on the
audited financial statements includes communication of one or more key audit
matters described in accordance with SA 701.16 However, the auditor is not required
to describe the individual key audit matters in the auditor’s report on the summary
financial statements.
A22. The statement(s) and description(s) required by paragraph 19 are intended to
draw attention to those matters and are not a substitute for reading the auditor’s
report on the audited financial statements. The required descriptions are intended to
convey the nature of the matter(s), and need not repeat the corresponding text in the
auditor’s report on the audited financial statements in its entirety.
Illustrations (Ref: Para.16, 19-21)
A23. The Appendix to this SA contains illustrations of independent auditor’s
reports on summary financial statements that variously:
(a) Contain unmodified opinions;
(b) Are derived from audited financial statements on which the auditor issued
modified opinions;
(c) Contain a modified opinion;
(d) Are derived from audited financial statements where the auditor’s report thereon
includes a statement describing an uncorrected material misstatement of the
other information in accordance with SA 720(Revised); and
(e) Are derived from audited financial statements where the auditor’s report thereon
includes a Material Uncertainty Related to Going Concern section and
communication of other key audit matters.
16 SA 701, paragraph 13.
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Comparatives (Ref: Para. 23-24)
A24. If the audited financial statements contain comparatives, there is a
presumption that the summary financial statements also would contain comparatives.
Comparatives in the audited financial statements may be regarded as corresponding
figures or as comparative financial information. SA 710 describes how this difference
affects the auditor’s report on the financial statements, including, in particular,
reference to other auditors who audited the financial statements for the prior period.
A25. Circumstances that may affect the auditor’s determination whether an
omission of comparatives is reasonable include the nature and objective of the
summary financial statements, the applied criteria, and the information needs of the
intended users of the summary financial statements.
Unaudited Supplementary Information Presented with Summary
Financial Statements (Ref: Para. 25)
A26. SA 700(Revised)17 contains requirements and guidance to be applied when
unaudited supplementary information is presented with the audited financial
statements that, adapted as necessary in the circumstances, may be helpful in
applying the requirement in paragraph 25.
Other Considerations (Ref: Para. 26-27)
A27. Other appropriate actions the auditor may take when management does not
take the requested action may include informing the intended users and other known
third-party users of the inappropriate reference to the auditor. The auditor’s course of
action depends on the auditor’s legal rights and obligations. Consequently, the
auditor may consider it appropriate to seek legal advice.
Material Modifications vis-a-vis ISA 810(Revised), “Engagements to
Report on Summary Financial Statements”
Addition
Paragraph 5 of ISA 810(Revised) [paragraph 5 of SA 810(Revised)] requires the
auditor to accept an engagement to report on summary financial statements in
accordance with this ISA only when the auditor has been engaged to conduct an
audit in accordance with ISAs of the financial statements from which the summary
financial statements are derived. In India, in some cases, the auditor may be
required by a law or a regulation governing the entity to report on summary financial
statements even for such accounting periods for which the former was not engaged
to conduct the audit in accordance with SAs of the financial statements pertaining to
such accounting periods. For example, in case of the report of the auditor of the
company to be included in a prospectus as per requirements of the SEBI(Issue of
Capital and Disclosure Requirements) Regulations 2018, such auditor might not
necessarily have been the auditor of all or some of the financial statements of the
17 SA 700(Revised), “Forming an Opinion and Reporting on Financial Statements”, paragraphs 52-53.
15
company in respect of the accounting periods relating to which financial information
has been reported upon by him/ her in the aforementioned report.
Accordingly, the word “ordinarily” has been added in paragraph 5 of this SA to cover
these situations and correspondingly footnote no. 3 has also been added.
16
Appendix18
(Ref: Para. A23)
Illustrations of Independent Auditor’s Reports on Summary
Financial Statements
• Illustration 1: An auditor’s report on summary financial statements prepared in
accordance with established criteria. An unmodified opinion is expressed on the
audited financial statements. The auditor’s report on the summary financial
statements is dated later than the date of the auditor’s report on the financial
statements from which the summary financial statements are derived. The
auditor's report on the audited financial statements includes a Material
Uncertainty Related to Going Concern section and communication of other key
audit matters.
• Illustration 2: An auditor’s report on summary financial statements prepared in
accordance with criteria developed by management and adequately disclosed in
the summary financial statements. The auditor has determined that the applied
criteria are acceptable in the circumstances. An unmodified opinion is expressed
on the audited financial statements. The auditor’s report on the summary financial
statements is dated the same as the date of the auditor’s report on the financial
statements from which the summary financial statements are derived. The
auditor’s report on the audited financial statements includes a statement that
describes an uncorrected material misstatement of the other information. The
other information to which this uncorrected material misstatement relates is also
information included in a document containing the summary financial statements
and the auditor’s report thereon.
• Illustration 3: An auditor’s report on summary financial statements prepared in
accordance with criteria developed by management and adequately disclosed in
the summary financial statements. The auditor has determined that the applied
criteria are acceptable in the circumstances. A qualified opinion is expressed on
the audited financial statements. The auditor’s report on the summary financial
statements is dated the same as the date of the auditor’s report on the financial
statements from which the summary financial statements are derived.
• Illustration 4: An auditor’s report on summary financial statements prepared in
accordance with criteria developed by management and adequately disclosed in
the summary financial statements. The auditor has determined that the applied
criteria are acceptable in the circumstances. An adverse opinion is expressed on
the audited financial statements. The auditor’s report on the summary financial
statements is dated the same as the date of the auditor’s report on the financial
statements from which the summary financial statements are derived.
• Illustration 5: An auditor’s report on summary financial statements prepared in
accordance with established criteria. An unmodified opinion is expressed on the
audited financial statements. The auditor concludes that it is not possible to
express an unmodified opinion on the summary financial statements. The
18 It may be noted that auditor’s report formats are illustrative in nature and necessary changes may be made as
per the facts and circumstances of the audit for example due to changes in applicable financial reporting
framework, applicable laws and regulations, pronouncements issued by ICAI.
17
auditor’s report on the summary financial statements is dated the same as the
date of the auditor’s report on the financial statements from which the summary
financial statements are derived.
18
Illustration 1:
Circumstances include the following:
• An unmodified opinion is expressed on the audited financial statements of a listed
company.
• Established criteria for the preparation of summary financial statements exist.
• The auditor’s report on the summary financial statements is dated later than the
date of the auditor’s report on the financial statements from which the summary
financial statements are derived.
• The auditor’s report on the audited financial statements includes a Material
Uncertainty Related to Going Concern section.
• The auditor’s report on the audited financial statements includes communication
of other key audit matters.19
REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL
STATEMENTS
[Appropriate Addressee]
Opinion
The summary financial statements, which comprise the summary balance sheet as at
March 31, 20XX, the summary statement of profit & loss, and summary cash flow
statement for the year then ended, and related notes, are derived from the audited
financial statements of ABC Company Limited for the year ended March 31, 20XX.
In our opinion, the accompanying summary financial statements are a fair summary
of the audited financial statements, in accordance with the Accounting Standards
notified under the Companies Act, 2013 and the accounting principles generally
accepted in India20.
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by the
Accounting Standards notified under the Companies Act, 2013 [applied in the
preparation of the audited financial statements of ABC Company Limited]. Reading
the summary financial statements and the auditor’s report thereon, therefore, is not a
substitute for reading the audited financial statements and the auditor’s report
thereon. The summary financial statements and the audited financial statements do
not reflect the effects of events that occurred subsequent to the date of our report on
the audited financial statements.
The Audited Financial Statements and Our Report Thereon
We expressed an unmodified audit opinion on the audited financial statements in our
report dated 15 May 20XX. That report also includes:
• A Material Uncertainty Related to Going Concern section that draws attention to
19 As explained in paragraph 15 of SA 701, a material uncertainty related to going concern is, by its nature, a key
audit matter but is required to be reported in a separate section of the auditor’s report in accordance with
paragraph 22 of SA 570(Revised).
20 Or such other criteria, as may be agreed upon in the terms of the engagement.
19
Note 6 in the audited financial statements. Note 6 of the audited financial
statements indicates that ABC Company Limited incurred a net loss of Rs. ZZZ
during the year ended March 31, 20XX and, as of that date, ABC Company
Limited current liabilities exceeded its total assets by Rs. YYY. These events or
conditions, along with other matters as set forth in Note 6 of the audited financial
statements, indicate that a material uncertainty exists that may cast significant
doubt on ABC Company Limited ability to continue as a going concern. These
matters are addressed in Note 5 of the summary financial statements.
• The communication of other21 key audit matters. [Key audit matters are those
matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period.]22
Management’s Responsibility for the Summary Financial Statements
The Board of Directors of the Company is responsible for the preparation of the
summary financial statements in accordance with the Accounting Standards notified
under the Companies Act, 2013 and the accounting principles generally accepted
in India23].
Auditor’s Responsibility
Our responsibility is to express an opinion on whether the summary financial
statements are a fair summary of the audited financial statements based on our
procedures, which were conducted in accordance with Standard on Auditing (SA)
810(Revised), “Engagements to Report on Summary Financial Statements”.
For XYZ and Co.
Chartered Accountants
Firm’s Registration Number
Signature
(Name of the Member Signing the Auditor’s Report)
(Designation24)
Membership Number
UDIN
Place of Signature
Date
21 In the circumstances where there is no material uncertainty related to going concern, inclusion of the word
"other" in the statement for the communication of key audit matters would not be necessary.
22 The auditor may include additional explanation about key audit matters considered helpful to users of the
auditor’s report on the summary financial statements.
23 Or such other criteria, as may be agreed upon in the terms of the engagement.
24 Partner or Proprietor, as the case may be.
20
Illustration 2:
Circumstances include the following:
• An unmodified opinion is expressed on the audited financial statements of a non-
corporate entity.
• Criteria are developed by management and adequately disclosed in Note X. The
auditor has determined that the criteria are acceptable in the circumstances.
• The auditor’s report on the summary financial statements is dated the same as the
date of the auditor’s report on the financial statements from which the summary
financial statements are derived.
• The auditor’s report on the audited financial statements includes a statement that
describes an uncorrected material misstatement of the other information. The
other information to which this uncorrected material misstatement relates is also
information included in a document containing the summary financial statements
and the auditor’s report thereon.
REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL
STATEMENTS
[Appropriate Addressee]
Opinion
The summary financial statements, which comprise the summary balance sheet as at
March 31, 20XX, the summary statement of profit & loss, and summary cash flow
statement for the year then ended, and related notes, are derived from the audited
financial statements of ABC & Associates for the year ended March 31, 20XX.
In our opinion, the accompanying summary financial statements are consistent, in all
material respects, with (or are a fair summary of) the audited financial statements,
on the basis described in Note X.
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by
[describe financial reporting framework applied in the preparation of the audited
financial statements of ABC & Associates]. Reading the summary financial
statements and the auditor’s report thereon, therefore, is not a substitute for reading
the audited financial statements and the auditor’s report thereon.
The Audited Financial Statements and Our Report Thereon
We expressed an unmodified audit opinion on the audited financial statements in our
report dated May 15, 20XX. [The audited financial statements are included in the
20XX Annual Report. The auditor’s report on the audited financial statements
includes a statement that describes an uncorrected material misstatement of other
information within Management’s Discussion and Analysis of the 20XX Annual
Report. Management’s Discussion and Analysis, and the uncorrected material
misstatement of the other information therein, are also contained in the 20XX
Summary Annual Report.] [Describe the uncorrected material misstatement of the
other information].
21
Management’s Responsibility for the Summary Financial Statements
The management is responsible for the preparation of the summary financial
statements on the basis described in Note X.
Auditor’s Responsibility
Our responsibility is to express an opinion on whether the summary financial
statements are consistent, in all material respects, with (or are a fair summary of) the
audited financial statements based on our procedures, which were conducted in
accordance with Standard on Auditing (SA) 810(Revised), “Engagements to Report
on Summary Financial Statements”.
For XYZ and Co.
Chartered Accountants
Firm’s Registration Number
Signature
(Name of the Member Signing the Auditor’s Report)
(Designation25)
Membership Number
UDIN
Place of Signature
Date
25 Partner or Proprietor, as the case may be.
22
Illustration 3:
Circumstances include the following:
• A qualified opinion is expressed on the audited financial statements of a non-
corporate entity.
• Criteria are developed by management and adequately disclosed in Note X. The
auditor has determined that the criteria are acceptable in the circumstances.
• The auditor’s report on the summary financial statements is dated the same as
the date of the auditor’s report on the financial statements from which the
summary financial statements are derived.
REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL
STATEMENTS
[Appropriate Addressee]
Opinion
The summary financial statements, which comprise the summary balance sheet as at
March 31, 20XX, the summary statement of profit & loss, and summary cash flow
statement for the year then ended, and related notes, are derived from the audited
financial statements of ABC & Associates for the year ended March 31, 20XX. We
expressed a qualified audit opinion on those financial statements in our report dated
May 15, 20XX26.
In our opinion, the accompanying summary financial statements are consistent, in all
material respects, with (or are a fair summary) of the audited financial statements, on
the basis described in Note X. However, the summary financial statements are
misstated to the equivalent extent as the audited financial statements of ABC &
Associates for the year ended March 31, 20XX.
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by
[describe financial reporting framework applied in the preparation of the audited
financial statements of ABC & Associates]. Reading the summary financial
statements and the auditor’s report thereon, therefore, is not a substitute for reading
the audited financial statements and the auditor’s report thereon.
The Audited Financial Statements and Our Report Thereon
We expressed a qualified audit opinion on the audited financial statements in our
report dated May 15, 20XX. The basis for our qualified audit opinion was that the
management has not stated the inventories at the lower of cost and net realisable
value but has stated them solely at cost, which constitutes a departure from the
Accounting Standard (AS) 2, “Valuation of Inventories”. The company’s records
indicate that had management stated the inventories at the lower of cost and net
realisable value, an amount of Rs. XXX would have been required to write the
inventories down to their net realisable value. Accordingly, cost of sales would have
26 The positioning of this reference to the qualified opinion in the auditor’s report on the audited financial
statements in the Opinion paragraph on the summary financial statements assists users in understanding that
although the auditor has expressed an unmodified opinion on the summary financial statements, the summary
financial statements reflect audited financial statements that are materially misstated.
23
been increased by Rs. XXX, and income tax, net income and shareholders’ equity
would have been reduced by Rs. XXX, Rs. XXX and Rs. XXX respectively.
Management’s Responsibility for the Summary Financial Statements
The management is responsible for the preparation of the summary financial
statements on the basis described in Note X.
Auditor’s Responsibility
Our responsibility is to express an opinion on whether the summary financial
statements are consistent, in all material respects, with (or are a fair summary of) the
audited financial statements based on our procedures, which were conducted in
accordance with Standard on Auditing (SA) 810(Revised), “Engagements to Report
on Summary Financial Statements”.
For XYZ and Co.
Chartered Accountants
Firm’s Registration Number
Signature
(Name of the Member Signing the Auditor’s Report)
(Designation27)
Membership Number
UDIN
Place of Signature
Date
27 Partner or Proprietor, as the case may be.
24
Illustration 4:
Circumstances include the following:
• An adverse opinion is expressed on the audited financial statements of a non-
corporate entity.
• Criteria are developed by management and adequately disclosed in Note X. The
auditor has determined that the criteria are acceptable in the circumstances.
• The auditor’s report on the summary financial statements is dated the same as the
date of the auditor’s report on the financial statements from which the summary
financial statements are derived.
REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL
STATEMENTS
[Appropriate Addressee]
Denial of Opinion
The summary financial statements, which comprise the summary balance sheet as at
March 31, 20XX, the summary statement of profit & loss, and summary cash flow
statement for the year then ended, and related notes, are derived from the audited
financial statements of ABC & Associates for the year ended March 31, 20XX.
As a result of the adverse opinion on the audited financial statements discussed in
the “Audited Financial Statements and our Report Thereon” section of our report, it is
inappropriate to express an opinion on the summary financial statements.
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by
[describe financial reporting framework applied in the preparation of the audited
financial statements of ABC & Associates]. Reading the summary financial
statements and the auditor’s report thereon, therefore, is not a substitute for reading
the audited financial statements and the auditor’s report thereon.
The Audited Financial Statements and Our Report Thereon
In our report dated May 15, 20XX, we expressed an adverse audit opinion on the
audited financial statements of ABC & Associates for the year ended March 31,
20XX. The basis for our adverse audit opinion was [describe basis for adverse audit
opinion].
Management’s Responsibility for the Summary Financial Statements
The management is responsible for the preparation of the summary financial
statements on the basis described in Note X.
Auditor’s Responsibility
Our responsibility is to express an opinion on whether the summary financial
statements are consistent, in all material respects, with (or are a fair summary of) the
25
audited financial statements based on our procedures, which were conducted in
accordance with Standard on Auditing (SA) 810(Revised), “Engagements to Report
on Summary Financial Statements”.
For XYZ and Co.
Chartered Accountants
Firm’s Registration Number
Signature
(Name of the Member Signing the Auditor’s Report)
(Designation28)
Membership Number
UDIN
Place of Signature
Date
28 Partner or Proprietor, as the case may be.
26
Illustration 5:
Circumstances include the following:
• An unmodified opinion is expressed on the audited financial statements of an
unlisted company.
• Established criteria for the preparation of summary financial statements exist.
• The auditor concludes that it is not possible to express an unmodified opinion on
the summary financial statements.
• The auditor’s report on the summary financial statements is dated the same as the
date of the auditor’s report on the financial statements from which the summary
financial statements are derived.
REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL
STATEMENTS
[Appropriate Addressee]
Adverse Opinion
The summary financial statements, which comprise the summary balance sheet as at
March 31, 20XX, the summary statement of profit & loss, and summary cash flow
statement for the year then ended, and related notes, are derived from the audited
financial statements of ABC Company Limited for the year ended March 31, 20XX.
In our opinion, because of the significance of the matter described in the Basis for
Adverse Opinion section, the accompanying summary financial statements are not a
fair summary of the audited financial statements of ABC Company Limited for the
year ended March 31, 20XX, in accordance with the Accounting Standards notified
under the Companies Act, 2013 and the accounting principles generally accepted
in India.
Basis for Adverse Opinion
[Describe matter that caused the summary financial statements not to be a fair
summary of the audited financial statements, in accordance with the applied criteria.]
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by the
Accounting Standards notified under the Companies Act, 2013 [applied in the
preparation of the audited financial statements of ABC Company Limited]. Reading
the summary financial statements and the auditor’s report thereon, therefore, is not a
substitute for reading the audited financial statements and the auditor’s report
thereon.
The Audited Financial Statements and Our Report Thereon
We expressed an unmodified audit opinion on the audited financial statements in our
report dated 15 May 20XX.
Management’s Responsibility for the Summary Audited Financial Statements
The Board of Directors of the Company is responsible for the preparation of the
summary financial statements in accordance with the Accounting Standards notified
27
under the Companies Act, 2013 and the accounting principles generally accepted
in India.
Auditor’s Responsibility
Our responsibility is to express an opinion on whether the summary financial
statements are a fair summary of the audited financial statements based on our
procedures, which were conducted in accordance with Standard on Auditing (SA)
810(Revised), “Engagements to Report on Summary Financial Statements”.
For XYZ and Co.
Chartered Accountants
Firm’s Registration Number
Signature
(Name of the Member Signing the Auditor’s Report)
(Designation29)
Membership Number
UDIN
Place of Signature
Date
29 Partner or Proprietor, as the case may be.
28