ISA 706 – Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report


Introduction

International Standard on Auditing 706: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report contains instructions on the usage of two kinds of paragraphs meant to aid understanding of users.

Executive Summary

If audit is of the opinion that a matter disclosed or presented in the financial statements is of importance for users’ understanding and needs to be highlighted then auditor includes emphasis of matter paragraph in the auditor’s report

In rare cases if a matter other than those presented or disclosed in the financial statements is important in the eyes of auditor for better understanding users regarding audit engagement then auditor shall add other matter paragraph