SA 700 (Revised) sets out how an auditor forms an opinion on financial statements and how the written report must be laid out. The opinion comes first, the basis for it comes straight after, and the report ends with the auditor's signature, place and date. If you can recite that order and know what goes in each section, you can read any Indian audit report in a few minutes.
Last reviewed: 17 October 2026. Facts checked. We opened the ICAI-hosted text of SA 700 (Revised), effective for audits of periods beginning on or after 1 April 2018, and an IAASB-linked summary of ISA 700 (Revised). We did not open every application paragraph, and we do not quote paragraph numbers. Statutory and regulator-specific layouts (for example CARO reporting) were not re-checked here.
What SA 700 covers
SA 700 deals with two jobs. First, forming an opinion on the financial statements from the evidence collected. Second, expressing that opinion clearly in a written report. It covers the unmodified opinion. Modified opinions sit in SA 705 and extra paragraphs sit in SA 706. Key audit matters sit in SA 701.
For the three opinion types, our existing guide on types of audit opinion is the place to start. This post is about the report itself: where each piece goes and what it must say.
The report, section by section
The standard asks for a written report. Its parts run in this order.
| Order | Section | What it does |
|---|---|---|
| 1 | Title | Shows clearly that this is the report of an independent auditor |
| 2 | Addressee | Names who the report is addressed to, based on the engagement |
| 3 | Opinion | Must be the first section, headed "Opinion" |
| 4 | Basis for Opinion | Must directly follow the Opinion |
| 5 | Going concern (where applicable) | Reported as SA 570 requires |
| 6 | Key audit matters (where applicable) | Under SA 701, required for listed entities |
| 7 | Other information (where applicable) | Under SA 720 |
| 8 | Responsibilities of management and those charged with governance | Who prepares the statements and assesses going concern |
| 9 | Auditor's responsibilities | What the audit is and is not |
| 10 | Report on other legal and regulatory requirements | Separate section, after the audit report part |
| 11 | Signature, place, date | Signed, with a named location and a date |
The standard fixes the position of the Opinion and Basis for Opinion sections only. For the rest, the order is practice and the layout in the ICAI illustrations.
What the Opinion section must contain
The Opinion section does five things:
- Names the entity whose financial statements were audited.
- States that they have been audited.
- Names each statement (balance sheet, statement of profit and loss, cash flow statement and so on).
- Refers to the notes and the summary of significant accounting policies.
- Gives the date, or period covered, for each statement.
For an unmodified opinion on a fair presentation framework, the wording is one of two equivalent phrases: the statements "present fairly, in all material respects" or "give a true and fair view". The report then names the framework, such as the Accounting Standards or Ind AS the company follows. If the framework is not the Accounting Standards, the opinion identifies where that framework comes from.
What the Basis for Opinion section must say
This section gives the opinion its context. It must:
- State that the audit was conducted in accordance with the Standards on Auditing.
- Point to the section describing the auditor's responsibilities.
- Say the auditor is independent under the relevant ethical requirements and refer to the ICAI Code of Ethics.
- Say whether the auditor believes the evidence is sufficient and appropriate for the opinion.
When the opinion is modified, this section changes its name and content. See SA 705 on modified opinions.
Signature, place and date
These look like formalities. They are not.
- Signature. The partner or proprietor signs in their personal name. Where a firm is the auditor, the report is signed in the personal name and in the firm's name. The ICAI membership number is given, and the firm registration number where one has been allotted.
- Place. The report names a specific location, usually the city where it is signed.
- Date. The date cannot be earlier than the day the auditor has enough appropriate evidence, including evidence that the full set of statements and notes has been prepared and that those with recognised authority have taken responsibility for them.
That last point matters in practice. Do not date the report on the day the client "agrees the numbers" if the notes are still being drafted. Our guide to generating a UDIN covers the identification step that follows signing.
Where the law prescribes the format
Sometimes a law or regulation sets a specific layout. The auditor may still refer to the Standards on Auditing, but only if the report contains a minimum list of elements. These include a title, an addressee, an opinion section, identification of the statements, the independence statement, and the sections on going concern, key audit matters and other information where they apply. In India, company audit reports also carry the "Report on Other Legal and Regulatory Requirements". Our CARO 2020 clause guide covers one common piece of it.
Common slips
A Taxmann summary of Quality Review Board observations says SA 700 non-compliance is common despite ICAI guidance. We did not open the Board's own report, so treat that as a pointer, not a statistic. The usual slips are easy to check:
- Opinion not first, or Basis for Opinion not directly after it.
- Statement titles that do not match the accounts.
- Wrong framework named.
- No ICAI Code of Ethics reference.
- Report dated before the notes were final.
- Missing membership or firm registration number.
A pre-signing check
Run down the slips above, then confirm the title and addressee match the appointment, optional sections are in where they apply, and the signature block is complete.
Our statutory audit workflow guide shows where the report sits at the end of the engagement. The audit documentation guide covers the file behind it.
Frequently Asked Questions
What is SA 700 in simple words?
It is the standard that tells the auditor how to form an opinion on the financial statements and how to write the report. It fixes the order of the key sections and what each must say.
Does the opinion always come first?
Yes. The standard requires the Opinion section to be the first section, with the heading "Opinion". The Basis for Opinion follows directly.
Is SA 700 the same as the international ISA 700?
SA 700 (Revised) is ICAI's version of ISA 700 (Revised) and follows the same structure. It adds India-specific points, such as the reference to the ICAI Code of Ethics and the signature requirements.
Who signs the audit report?
The engagement partner, in their personal name. Where a firm is appointed, the report is also signed in the firm's name, with the membership number and firm registration number.
Where do key audit matters go?
In their own section after the going concern section, where they apply. Our guide to key audit matters under SA 701 has worked examples.
Related Articles
- Types of audit opinion in India
- Key audit matters under SA 701
- Statutory audit explained: who needs it, process and report
- CARO 2020 clause-by-clause guide
If you draft many reports a season, the CARO 2020 checker is a quick way to test applicability before you write that part.
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