EMPHASI S OF MATTER PARAGRAPHS AND
OTHER MATTER PARAGRAPHS I N THE
PSA I NDEPENDENT AUDI TOR?S REPORT
70 6
S c ope
This PSA deals with additional communication in the auditor?s
report when the auditor considers it necessary to:
1. Draw users?attention to a matter or matters presented or
disclosed in the financial statements that are of such
importance that they are fundamental to users?understanding
of the financial statements
2. Draw users?attention to any matter or matters other than
those presented or disclosed in the financial statements that
are relevant to users?understanding of the audit, the auditor?s
responsibilities or the auditor?s report.
R e q u ir e m e n t s
Emphasis of Mat t er Par agr aphs in t he Audit or ?s Repor t
If the auditor considers it necessary to draw users?attention to
a matter presented or disclosed in the financial statements that
is of such importance that it is fundamental to users?
understanding of the financial statements, the auditor shall
include an Emphasis of Matter paragraph in the auditor?s
report provided:
A. The auditor would not be required to modify the opinion in
accordance with PSA 705 (Revised)3 as a result of the matter;
and
B. When PSA 701 applies, the matter has not been determined
to be a key audit matter to be communicated in the auditor?s
report. (Ref: Para. A1?A3)
Ob je c t iv e D e f in it io n s
The objective of the auditor is to draw users?attention, when Emphas i s of Mat t er par agr aph
in the auditor?s judgment it is necessary to do so, by additional A paragraph included in the auditor?s report that refers to a
communication in the auditor?s report, to: matter appropriately presented or disclosed in the financial
statements that, in the auditor?s judgment, is of such
1. A matter, although appropriately presented or disclosed in importance that it is fundamental to users?understanding of the
the financial statements, that is of such importance that it is financial statements.
fundamental to users?understanding of the financial
statements or Ot her Mat t er par agr aph
A paragraph included in the auditor?s report that refers to a
2. As appropriate, any other matter that is relevant to users? matter other than those presented or disclosed in the financial
understanding of the audit, the auditor?s responsibilities or the statements that, in the auditor?s judgment, is relevant to users?
auditor?s report. understanding of the audit, the auditor?s responsibilities or the
auditor?s report.
Ot her Mat t er Par agr aphs in t he Audit or ?s Repor t Communicat ion wit h Those
Char ged wit h Gover nance
If the auditor considers it necessary to communicate a matter
other than those that are presented or disclosed in the The auditor shall
financial statements that is relevant to users?understanding of communicate with those
the audit, the auditor?s responsibilities or the auditor?s report, charged with governance
the auditor shall include an Other Matter paragraph in the regarding this expectation
auditor?s report, provided: and the wording of this
paragraph.
(a) This is not prohibited by law or regulation; and
(b) When PSA 701 applies, the matter has not been
determined to be a key audit matter to be communicated in the
auditor?s report