This Statement is also one of the earliest documents issued by the Institute and is aimed at providing guidance to members on the reporting requirements under the Companies Act, 1956 as also the essentials for making a qualification in the auditor's report. The Statement therefore covers the following topics in a detailed manner:

• Reporting under section 227(1A) of the Companies Act, 1956.
  
  

• General considerations while making a qualification:
  
  

aspects to be considered, manner of qualifying, directors' comments on qualifications, separate report to directors, branch audit reports.

The Statement also contains examples of total effect of qualifications and also examples of explanatory notes.
Third edition issued in September, 1984

Published in the Handbook of Auditing Pronouncements, Vol. I (Edn. 2008). Also available as a separate publication of the Institute (price: Rs. 20/-). ISBN: 81-85868-60-3.

It may, however, be noted that the Council of the ICAI at its 269th meeting held in July 2007 has withdrawn the Statement on Qualifications in Auditor’s Report except paragraphs 2.1 to 2.30, dealing with report under section 227(1A) of the Companies Act, 1956. The above statement has also been renamed as ‘Statement on Reporting under section 227 (1A) of the Companies Act, 1956’.