Emphasis of Matter and Opinion

Question 1

emphasis of matter paragraph

Answer 1

“Emphasis of Matter” after opinion; where disclosures can be found’ audit opinion is not modified

1) going concern
2) inconsistency in principles
3) f/s according to framework
4) uncertainty for important litigation or reg action
5) catastrophe that has a significant effect
6) significant transactions with related parties
7) unusual subsequent events

Question 2

Other matter

Answer 2

after opinion or emphasis if there is one
heading “Other Matter”
deals with matter outside of the f/s

1) opinion is different than previously expressed
2) when reporting on more than one set of f/s (IFRS and GAAP)
3) not possible to withdraw due to managements imposing a pervasive scope of limitation

reporting responsibilities should be on: “Report on Other Legal and Regulatory Requirements.”