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Hi sir
where do we use emphasis of matter paragraph?
And when we include EMP in audit report.. SO we give modified or unmodified opinion?This is explained in the notes – an EoM draws users’ (i.e. shareholders’) attention to something that is ADEQUATELY disclosed in the notes to the financial which the auditor considers to be of fundamental importance to their understanding of the financial statements. This could, for example, be used to draw attention to a non-adjusting events after the reporting date. Since the matter is adequately disclosed it does not affect the audit opinion which may therefore be unmodified (or modified in respect of an entirely different matter).
All aspects of the auditor’s report will be discussed with TCWG – so yes, EoM will be discussed with TCWG – but this does not, of itself, make it a key audit matter. If it IS a KAM (see notes for description) it would be included in KAM section, and there would then be no EoM. (Because any matter appears only once in the auditor’s report.)In BPP revision kit – answer sheet it is mentioned that1/2 mark is mentioned if you state which IAS is that!?
Is it true?Where relevant I think stating what the correct accounting treatment should be will get 1 mark regardless of whether you state the standard. It will look better of course if you back up the point with the standard. Merely stating a standard without any explanation of its relevance is most likely not worth anything.
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