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Those matters that do not affect the Auditor’s opinion would be highlighted in the “Emphasis of matters” paragraph which is placed after the “basis for opinion” paragraph right?
I believe this extract from the ISA answers you:
‘Placement of Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Auditor’s Report
The placement of an Emphasis of Matter paragraph or Other Matter paragraph in the auditor’s report depends on the nature of the information to be communicated, and the auditor’s judgment as to the relative significance of such information to intended users compared to other elements required to be reported in accordance with ISA 700 (Revised). For example:
Emphasis of Matter Paragraphs
• When the Emphasis of Matter paragraph relates to the applicable financial reporting framework, including circumstances where the auditor determines that the financial reporting framework prescribed by law or regulation would otherwise be unacceptable, the auditor may consider it necessary to place the paragraph immediately following the Basis of Opinion section to provide appropriate context to the auditor’s opinion.
• When a Key Audit Matters section is presented in the auditor’s report, an Emphasis of Matter paragraph may be presented either directly before or after the Key Audit Matters section, based on the auditor’s judgment as to the relative significance of the information included in the Emphasis of Matter paragraph
So, it seems, it depends!
Means those matters would be either stated in ‘Emphasis of Matter’s paragraph or ‘Key Audit Matter’ paragraph depends on the significant of matters? Correct?
I believe so – but an EOM is not to be used as an alternative for a KAM. If it’s in a KAM, it should not also be an EOM
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