[section separator="true"]
[section-item 9]
[row]
[column 12]
[toc-this]
Instructions
Emphasis of matter paragraph
In certain circumstances, the auditor may use an Emphasis of Matter paragraph to draw readers' attention to a matter of such importance that it is fundamental to users' understanding of the accounts. Such a paragraph should only refer to information presented or disclosed in the annual accounts, not to information included in the [link new-window title="auditor%E2%80%99s%20report" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FStatement-of-Assurance.aspx" /]
.
Obtain evidence that matter is not misstated or non-compliant
The auditor should use an Emphasis of Matter paragraph only if (s)he has obtained sufficient appropriate [link new-window title="audit%20evidence" link="%2Faware%2FGAP%2FPages%2FAudit-evidence.aspx" /]
that the matter is not [link new-window title="materially%20misstated" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FPlanning%2FMateriality.aspx" /]
in the annual accounts or the stated matter corresponds, in all material respects, with the legal and regulatory framework.
Depends on auditor's judgement
Whether or not to include an Emphasis of Matter paragraph, which is not an alternative to a [link new-window title="modified%20opinion" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FModified-opinion.aspx" /]
, depends on the judgement of the auditor.
Placement and wording of paragraph
When the auditor includes an Emphasis of Matter paragraph in the auditor’s report, the auditor should:
Other Matter(s) in the auditor’s report
When the auditor considers it appropriate to communicate matters other than those that are presented or disclosed in the annual accounts or related to the legality and regularity of transactions underlying the accounts, (s)he should use an Other Matter(s) paragraph. The section “Other Matter(s)" is placed taking into account the nature of the information to be communicated and the auditor’s judgement as to the relative significance of such information to intended users compared to other elements required to be reported in accordance with [link new-window title="ISA%20700" link="https%3a%2f%2fwww.ifac.org%2fsystem%2ffiles%2fpublications%2ffiles%2fIAASB-2020-Handbook-Volume-1.pdf%23INTERNATIONAL%2520STANDARD%2520ON%2520AUDITING%2520700" icon="file-pdf-o" /]
.
When the auditor expects to include an Emphasis of Matter or an Other Matter(s) paragraph in the auditor’s report, the auditor should communicate with those charged with governance regarding this expectation, and the proposed wording of this paragraph.
[/toc-this]
[/column]
[/row]
[/section-item]
[section-item 3]
[row]
[column 12]
[panel panel-style="boxed" title="Related%20documents" icon="book" class="ref-panel"]
[standards]
[link new-window title="ISA%20700" link="https%3a%2f%2fwww.ifac.org%2fsystem%2ffiles%2fpublications%2ffiles%2fIAASB-2020-Handbook-Volume-1.pdf%23INTERNATIONAL%2520STANDARD%2520ON%2520AUDITING%2520700" /]
[link new-window title="ISA%20706" link="https%3a%2f%2fwww.ifac.org%2fsystem%2ffiles%2fpublications%2ffiles%2fIAASB-2020-Handbook-Volume-1.pdf%23INTERNATIONAL%2520STANDARD%2520ON%2520AUDITING%2520706%2520(REVISED)" /]
[/standards]
[/panel]
[/column]
[/row]
[row]
[column 12][/column]
[/row]
[row]
[column 12]
[toc fixed="true" selectors="h2%2Ch3" class="basic-toc" /]
[/column]
[/row]
[/section-item]
[/section]