- This topic has 2 replies, 3 voices, and was last updated 9 years, 10 months ago by
.
-
Topic
-
An auditor is considering adding an emphasis-of-matter paragraph in an audit report. Research the professional standards and select the section that illustrates the overall guidance for the information to be included as well as any placement and disclosure requirements such a paragraph.
I put AU-C § 706 · 06 but it says the correct answer is AU-C § 706 · 07. I am just wondering, wouldn’t both of these be acceptable answers?
Emphasis-of-Matter Paragraphs in the Auditor’s Report
.06 If the auditor considers it necessary to draw users’ attention to a matter appropriately presented or disclosed in the financial statements that, in the auditor’s professional judgment, is of such importance that it is fundamental to users’ understanding of the financial statements, the auditor should include an emphasis-of-matter paragraph in the auditor’s report, provided that the auditor has obtained sufficient appropriate audit evidence that the matter is not materially misstated in the financial statements. Such a paragraph should refer only to information presented or disclosed in the financial statements. (Ref: par. .A2–.A3)
.07 When the auditor includes an emphasis-of-matter paragraph in the auditor’s report, the auditor should
a. include it immediately after the opinion paragraph in the auditor’s report,
b. use the heading “Emphasis of Matter” or other appropriate heading, (Ref: par. .A4) >
c. include in the paragraph a clear reference to the matter being emphasized and to where relevant disclosures that fully describe the matter can be found in the financial statements, and
d. indicate that the auditor’s opinion is not modified with respect to the matter emphasized. (Ref: par. .A5)
- The topic ‘AUD Sim’ is closed to new replies.
