Below is Sec 143 (1) / (2) / (3) / (4), which require auditor to comment these points in his report, some of them where lot of judgement is required are called statement of opinion and where we can report on accuracy it is called as statement of fact.
143. (1) Every auditor of a company shall have a right of access at all times to the books of account and vouchers of the company, whether kept at the registered office of the company or at any other place and shall be entitled to require from the officers of the company such information and explanation as he may consider necessary for the performance of his duties as auditor and amongst other matters inquire into the following matters, namely:—
whether loans and advances made by the company on the basis of security have been properly secured and whether the terms on which they have been made are prejudicial to the interests of the company or its members; (Statement of Opinion)
whether transactions of the company which are represented merely by book entries are prejudicial to the interests of the company; (Statement of Opinion)
where the company not being an investment company or a banking company, whether so much of the assets of the company as consist of shares, debentures and other securities have been sold at a price less than that at which they were purchased by the company; (Statement of Fact)
whether loans and advances made by the company have been shown as deposits;(Statement of Fact)
whether personal expenses have been charged to revenue account;(Statement of Fact)
where it is stated in the books and documents of the company that any shares have been allotted for cash, whether cash has actually been received in respect of such allotment, and if no cash has actually been so received, whether the position as stated in the account books and the balance sheet is correct, regular and not misleading:(Statement of Fact)
Provided that the auditor of a company which is a holding company shall also have the right of access to the records of all its subsidiaries insofar as it relates to the consolidation of its financial statements with that of its subsidiaries.
(2) The auditor shall make a report to the members of the company on the accounts examined by him and on every financial statements which are required by or under this Act to be laid before the company in general meeting and the report shall after taking into account the provisions of this Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of this Act or any rules made thereunder or under any order made under sub-section (11) and to the best of his information and knowledge, the said accounts, financial statements give a true and fair view (Statement of Opinion) of the state of the company’s affairs as at the end of its financial year and profit or loss and cash flow for the year and such other matters as may be prescribed.
(3) The auditor’s report shall also state—
whether he has sought and obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of his audit and if not, the details thereof and the effect of such information on the financial statements; (Statement of Opinion)
whether, in his opinion, proper books of account as required by law have been kept by the company so far as appears from his examination of those books and proper returns adequate for the purposes of his audit have been received from branches not visited by him; (Statement of Opinion)
whether the report on the accounts of any branch office of the company audited under sub-section (8) by a person other than the company’s auditor has been sent to him under the proviso to that sub-section and the manner in which he has dealt with it in preparing his report; (Statement of Fact)
whether the company’s balance sheet and profit and loss account dealt with in the report are in agreement with the books of account and returns;(Statement of Fact)
whether, in his opinion, the financial statements comply with the accounting standards; (Statement of Opinion)
the observations or comments of the auditors on financial transactions or matters which have any adverse effect on the functioning of the company; (Statement of Fact)
whether any director is disqualified from being appointed as a director under sub-section (2) of section 164; (Statement of Fact)
any qualification, reservation or adverse remark relating to the maintenance of accounts and other matters connected therewith; (Statement of Opinion)
Other matters to be included in auditors report
11. The auditor’s report shall also include their views and comments on the following matters, namely:-
whether the company has disclosed the impact, if any, of pending litigations on its financial position in its financial statement; (Statement of Fact)
whether the company has made provision, as required under any law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts; (Statement of Opinion)
whether there has been any delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company. (Statement of Fact)
1 [ (d)
whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.] (Statement of Fact)
(4) Where any of the matters required to be included in the audit report under this section is answered in the negative or with a qualification, the report shall state the reasons therefor.