International Standard on Auditing 700: Forming an Opinion and Reporting on Financial Statements guides auditors on how to express opinion formed on the basis of conclusions reached using audit evidence obtained. This provides the format of written report called auditor’s report and explains the requirements regarding contents and working of auditor’s report
Auditors are required to form an opinion on the basis of sufficient appropriate audit evidence obtained and express it clearly in the form of a written report. In order to form an opinion auditor must adhere to the requirements of ISA 700 and under the circumstances of engagement appropriate select the type of opinion to be expressed i.e. qualified, adverse or disclaimer of opinion. Auditor must follow the guidelines of ISA 700 regarding the format and content of auditor’s report and if any supplementary information is provided by the management auditor must ensure it is consistent with audited financial statements.