PSA 706 (REVISED) EMPHASIS OF MATTER PARAGRAPHS AND OTHER
MATTER PARAGRAPHS IN THE INDEPENDENT AUDITOR’S REPORT
Objective:
(b) As appropriate,
Objective Objective: any other matter that
The objective of the auditor, is relevant to users’
(a) A matter, although appropriately
having formed an opinion on the understanding of the
presented or disclosed in the financial
financial statements, is to draw audit, the auditor’s
statements, that is of such
users’attention, when in the responsibilities or the
importance that it is fundamental to
auditor’s judgment it is necessary auditor’s report.
users’ understanding of the financial
to do so, by way of clear statements; or
additional communication in the
auditor’s report, to:
(a) The auditor would not be
required to modify the opinion in
If the auditor considers it necessary accordance with PSA 705
Requirements to draw users’ attention to a matter (Revised)3 as a result of the
presented or disclosed in the matter; and
financial statements that, in the
auditor’s judgment, is of such (b) When PSA 701 applies, the
Emphasis of Matter importance that it is fundamental to matter has not been determined
Paragraphs in the users’ understanding of the financial to be a key audit matter to be
Auditor’s Report statements, the auditor shall include communicated in the auditor’s
an Emphasis of Matter paragraph in report
the auditor’s report provided:
(c) Indicate that the
(b) Include in the paragraph a clear auditor’s opinion is not
When the auditor includes an reference to the matter being modified in respect of
Emphasis of Matter paragraph in emphasized and to where relevant the matter emphasized.
the auditor’s report, the auditor disclosures that fully describe the
shall: matter can be found in the financial
statements. The paragraph shall refer
(a) Include the paragraph within a only to information presented or
separate section of the auditor’s disclosed in the financial statements;
report with an appropriate heading and
that includes the term “Emphasis
of Matter”;
Communication with Those
Charged with Governance
When the auditor includes And
12. If the auditor expects to include
Other Matter paragraph in
an Emphasis of Matter or an Other
Other Matter the auditor’s report, the
Matter paragraph in the auditor’s
Paragraphs auditor shall include the
report, the auditor shall communicate
in the paragraph within a separate
with those charged with governance
Auditor’s section with the heading
regarding this expectation and the
Report “Other Matter,” or other
wording of this paragraph.
appropriate heading.
