What does the auditor's report tell you?
Every year, an independent chartered accountant firm checks a listed company's accounts. Its report ends with an opinion on whether the accounts give a "true and fair view".
In India, auditors follow the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India (ICAI). Three of them shape the opinion: SA 700, SA 705 and SA 706.[S1]
What does a clean opinion look like?
A clean report has an "unmodified" opinion. The auditor found the accounts fairly presented in all material respects.[S1]
When the opinion is unmodified, the company files a declaration saying so with its annual results.[S2]
What are the three kinds of modified opinion?
SA 705 lists three ways an auditor can modify the opinion.[S1]
| Opinion | When the auditor gives it |
|---|---|
| Qualified ("except for") | A problem is material, but limited to certain items |
| Adverse | Misstatements are material and pervasive: they affect the accounts as a whole |
| Disclaimer of opinion | The auditor could not get enough evidence, and the possible effect is material and pervasive |
"Material" means big enough to change a reader's view. "Pervasive" means spread across the accounts rather than one line.
Under the Companies Act, a negative or qualified answer on a required matter must come with reasons.[S4]
Is an emphasis of matter a qualification?
No. An emphasis of matter paragraph draws attention to something already disclosed in the notes. SA 706 says it does not modify the opinion.[S1]
Auditors use it for matters they see as basic to understanding the accounts. Examples include the uncertain outcome of unusual litigation, or a major disaster that hit the business.[S1]
An "other matter" paragraph is different again. It covers something outside the accounts that helps readers understand the audit.[S1]
Where do you find these in filings?
Listed companies file annual audited results within 60 days of the year's end, with the audit report.[S2]
A modified opinion comes with a Statement on Impact of Audit Qualifications. Management can give its own view on each qualification there.[S3] The form is part of the "Integrated Filing (Financial)".[S3]
Quarterly results that are not audited come with a "limited review" report from the same auditor.[S2] A limited review is a lighter check than a full audit.
The full report also sits in the annual report, just before the financial statements. The guide to reading an annual report shows where.
How does Cityfort show audit opinions?
Each stock page names the statutory auditor and lists any qualifications in "Governance signals".
See it in real companies
Statutory auditors of companies on Cityfort
18 companies on Cityfort, listed A–Z (not ranked).
- Asian Paints
- S R B C & Co. LLPFY26 · source S107
- Bajaj Finance
- Price Waterhouse LLP and Kirtane & Pandit LLP (joint statutory auditors, FY25 to FY27)FY26 · source S3, S1
- Bharti Airtel
- Deloitte Haskins & Sells LLPFY26 · source S1, S45
- Hindustan Unilever
- Walker Chandiok & Co LLPFY26 · source S127, S1
- ICICI Bank
- B S R & Co. LLP and C N K & Associates LLP (joint statutory auditors)FY26 · source S1
- Kalyani Steels
- Kirtane & Pandit LLPFY26 · source S1
- Kotak Mahindra Bank
- Deloitte Haskins & Sells and M M Nissim & Co LLP (joint statutory auditors)FY26 · source S1
- Reliance Industries
- Deloitte Haskins & Sells LLP and Chaturvedi & Shah LLP (joint auditors)FY26 · source S5, S1
From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.
See it in real companies
Audit qualifications at companies on Cityfort
18 companies on Cityfort, listed A–Z (not ranked).
- Asian Paints
- None on the pageFY26 · source S107
- Bajaj Finance
- None on the pageFY26 · source S3, S1
- Bharti Airtel
- None on the pageFY26 · source S1, S45
- Hindustan Unilever
- None on the pageFY26 · source S127, S1
- ICICI Bank
- None on the pageFY26 · source S1
- Kalyani Steels
- None on the pageFY26 · source S1
- Kotak Mahindra Bank
- None on the pageFY26 · source S1
- Reliance Industries
- None on the pageFY26 · source S5, S1
From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.
What happens when an auditor resigns?
A resignation partway through a term is a disclosable event. The company must send the auditor's detailed reasons to the exchanges within 24 hours of receiving them.[S2]
SEBI also sets conditions on when an auditor may leave:[S3]
- Resigning within 45 days of a quarter's end: the auditor first issues the report for that quarter.
- Resigning later than that: the auditor issues the reports for that quarter and the next one.
- After signing reports for the first three quarters: the auditor completes the full year's audit.
The audit committee must discuss the auditor's concerns and give its views. Those views reach the exchanges within 24 hours of that committee meeting.[S3]
Under the Companies Act, a resigning auditor files a statement with the company and the Registrar within 30 days. It gives the reasons for resigning.[S4]
Is every change of auditor a resignation?
No. The Companies Act limits how long one auditor can serve a listed company. An individual can serve one five-year term, and a firm two consecutive five-year terms.[S4]
So a new auditor at the end of a term is a scheduled rotation. Saksoft's auditor, for example, was first appointed in 2017 and re-appointed in 2022 for five years.[S5][S6]
A resignation before the term ends is different, and comes with the reasons above. Our guide on finding NSE and BSE announcements shows where to read them.