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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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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