ISA 706 ( Emphasis of matter and other matter paragraphs)

Question 1

When to add Emphasis of matter paragraph in audit report?

Answer 1

Emphasis of matter is included in audit report if:
* Auditor considered it necessary to Draw user attention to matter that is disclosed in F/s and
* Fundamental to user understanding of F/s Provided:
1.Auditor is not required to modify opinion in respect to this matter.
2.Matter is not key audit matter.

Question 3

Emphasis of matter paragraph

What are three points to remember in Emphasis of matter paragraph?

Answer 3

1. An emphasis of matter paragraph doesnot modify audit opinion but it modify audit report.
2. An emphasis of matter paragraph is include in audit report to draw user attention to entities disclosure.
3. EOM is not included:
   * IF disclosure is not appropriate.
   * IF there is material uncertanity related to going concern.