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RaviRavi Staff answered 4 years ago

SA 210 explains pre conditions before accepting all assignments, apart from this they all explain some special circumstances. One of them is situation where FRF (accounting & format) prescribed by law is unacceptable but we are bound to do audit because required by law. Below is explanation with example
(E.g. FRF applicable to Indian Space Research Organisation(ISRO) where only 2 headings of income / expenses / asst / liability are prescribed to preserve confidentiality, so format doesnt give proper understanding)

  1. In this case Accept assignment only if
  • Additional disclosure by management in FST AND auditor will put EMP + No use of word “fair” in opinion
  • If no such thing is possible and still there is compulsion to audit by law and If its misleading modify report AND warn management in engagement letter.

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