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CS Professional · Compliance Management, Audit and Due Diligence · Forming an Opinion and Reporting

An auditor wants to include an Other Matter paragraph on a matter that relates to the Other Reporting Responsibilities addressed in the auditor's report of Bharat Steels Ltd. Where may the paragraph appropriately be placed?

It may be placed in the Report on Other Legal and Regulatory Requirements section. SA 706 (Revised) provides this placement where the Other Matter paragraph draws attention to a matter relating to the Other Reporting Responsibilities addressed in the auditor's report.

  1. AImmediately following the Basis of Opinion section only
  2. BWithin the Key Audit Matters section only
  3. CIn the Report on Other Legal and Regulatory Requirements sectionCorrect
  4. DWithin the Opinion paragraph, replacing the opinion wording

Explanation

SA 706 (Revised) states that when an Other Matter paragraph draws attention to a matter relating to Other Reporting Responsibilities, it may be included in the Report on Other Legal and Regulatory Requirements section. Immediately after Basis of Opinion is the placement mentioned for Emphasis of Matter paragraphs on the reporting framework.

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