Lesson 11.5 - Auditor's report

Question 1

Provide the order of the headings that must appear in a audit report.

Answer 1

ISA 700 par 20
- Title
- Addressee
- Auditor’s Opinion
- Basis of opinion
- Going concern
- Key audit matters
- Other information
- Responsibilities of management for the financial statements
- Auditor’s responsibilities for the audit of the financial statements

Question 2

When shall the auditor raise a emphasis of matter paragraph?

Answer 2

ISA 706 par 8

If the auditor considers it necessary to draw users’ attention to a matter presented or disclosed in the financial statements that, in the auditor’s judgement, is of such importance that it is fundamental to users’ understanding of the financial statements in the auditor’s report provided:

a) The auditor would not be required to modify the opinion as a result of the matter

b) When ISA 701 applies, the matter has not been identified to be a key audit matter to be communicated in the AR.