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Wiley Practitioner's Guide to GAAS 2023, 2nd Edition
book

Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

by Joanne M. Flood
April 2023
Intermediate to advanced content levelIntermediate to advanced
1056 pages
34h 59m
English
Wiley
Content preview from Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

34AU-C 706 Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report

SCOPE

AU-C 706 provides guidance when the auditors consider it necessary to draw users’ attention to matters:

  • Presented or disclosed in the financial statements that are of such importance that they are fundamental to the users’ understanding in an emphasis-of-matter paragraph or
  • Other than those presented or disclosed in the financial statements that are relevant to users’ understanding of the audit, the auditor's responsibilities, or the auditor's report (other-matter paragraph).

(AU-C 706.01)

DEFINITIONS OF TERMS

Source: AU-C 706.07. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Emphasis-of-matter paragraph, Other-matter paragraph.

OBJECTIVES OF AU-C 706

The objective of the auditor, having formed an opinion on the financial statements, is to draw users’ attention, when in the auditor's judgment it is necessary to do so, by way of clear additional communication in the auditor's report, to

  1. a matter, although appropriately presented or disclosed in the financial statements, that is of such importance that it is fundamental to users’ understanding of the financial statements or
  2. as appropriate, any other matter that is relevant to users’ understanding of the ...
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Publisher Resources

ISBN: 9781394152704Purchase Link