In March 2019, SEBI had laid down the procedure and formats to be followed for limited review and audit report of listed entities.Such formats was came out after a new sub-regulation was inserted in the LODR (Listing Obligation and Disclosures Requirements) norms which requires the statutory auditor of a listed entity to undertake a limited review of the audit of all the entities or companies whose accounts are to be consolidated with the listed entity as per the Accounting Standard 21.
On Friday, Market regulator SEBI has changed the formats for limited review and audit report of listed entities in order to align the same with the revised auditing standards issued by ICAI.
SEBI clarifies as the ICAI has revised it auditing standards (SA 700), there is a need to bring the new formats for audit report and limited review report also i.e. “audit report formats need to be aligned with SA 700 (revised)”.
However, this would also be applicable to entities whose accounts are to be consolidated with the listed entity.