- 10 Marks
AAA – May 2021 – L3 – Q4a – Reporting | Government external audit and public accountability
Discuss additional guidance for public sector auditors on the use of emphasis of matter paragraphs in audit reports according to ISSAI 1706 (Revised).
Question
ISSAI 1706 (Revised) provides the requirements for an auditor who, having formed an opinion on the financial statements, has determined that it is necessary to draw users’ attention, by way of clear additional communication in the auditor’s report, to:
(a) 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 (b) As appropriate, any other matter relevant to users’ understanding of the audit, the auditor’s responsibilities, or the auditor’s report.
Required:
What additional guidance for public sector auditors relates to “Emphasis of Matter Paragraphs” in the Auditor’s Report? (10 marks)
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