A7 Emphasis of Matter, Other Matter, Explanatory Paragraph

Question 1

EOM, Other Matter, Explanatory Paragraphs

Answer 1

These are used when referring to a matter that is appropriately presented or disclosed in the financials and its of such importance that its fundamental to the user’s understanding.

Question 2

EOM Requirements

Answer 2

EOM paragraphs are required when there’s CAP; lack of Consistency, Audit opinion change, and Purpose with regards to special purpose framework.

Question 2

Other Matter Paragraphs

Answer 2

OMP are normally used when referring to matters other than those presented or disclosed in the FS which are relevant to the user’s understanding. Required when restricting the use of the audit report, when subsequently discovered facts lead to a change in audit opinion, & when there are comparative FS.