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ICFR and True & Fair view of Financial Statements

Kunal Agarwal (student) (25 Points)

25 May 2016

Upon Testing of Internal Control over Financial Reporting, some of the control over review of Documents has been tested as negative.

1.Whether ICFR reporting will be adverse? If Yes, then

2.What will be the effect of this adverse Opinion on True & Fair View of the Financial Statements ?

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2 Replies

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 04 June 2016

Hi Kunal

During control testing if you find that some of the controls addressed by the company against risks identfied are ineffective as on 31-Mar-16 i.e reporting date then auditor has to give adverse opinion in his audit report since these ineffective controls are directly affecting the internal controls effectiveness over financial reporting.

Kunal Agarwal (student) (25 Points)
Replied 09 June 2016

Thanks for the reply Ma'am,

But do we need to give adverse opinion only to the Annexure to the Auditors' Report on ICFR or to the whole Independent Auditors Report on True & Fair View of Financial Statements, as Reporting to the ICFR is Seperate as Annexure to Independent Auditors' Report?