Category Archive for: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report

QUESTIONS AND ANSWERS

Under what circumstances an Emphasis of a matter paragraph is include in the audit opinion? Refer to paragraph 2 of the text Why a widespread use of Emphasis of Matter paragraph is discouraged by the Auditing Standard? Widespread use of Emphasis of Matter paragraph is discouraged by the Auditing Standards because: (a) Emphasis of a matter paragraph diminishes…

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EMPHASIS OF’ MATTER PARAGRAPHS IN THE INDEPENDENT AUDITOR’S REPORT

1. INTRODUCTION ISA 706 deals with two types of additional communication In the auditor’s report. (a) Emphasis of matter paragraph (b) Other matters paragraph 2. EMPHASIS OF MATTER Emphasis of a matter paragraph is necessary under following circumstances: (a) Significant uncertainly relating to litigation (b) Early application of a new accounting standard c) A major catastrophe which…

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