What modifications or disclosures are required in the current year's audit report in accordance with the relevant Standards on Auditing?

If the financial statements of the prior period were audited by a predecessor auditor and the auditor is permitted by law or regulation to refer to the predecessor auditor's report on the corresponding figures and decides to do so, the auditor shall state in an Other Matter paragraph in the auditor's report: (i) That the financial statements of the prior period were audited by a predecessor auditor; (ii) The type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and (iii) The date of that report. In the given case, the previous year's audit was conducted by Gupta & Mehra LLP, who issued an adverse opinion due to a misstatement in trade receivables. Accordingly, CA Roshan should include an Other Matter paragraph in the current year's auditor's report, disclosing that the prior year financials were audited by Gupta & Mehra LLP; an adverse opinion was expressed due to material misstatement in trade receivables; and the date of the prior auditor's report.