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

The auditor of Sagar Pharma Ltd wants to include an Other Matter paragraph that relates to other reporting responsibilities addressed in the report. Where may this paragraph be included?

It may be included in the Report on Other Legal and Regulatory Requirements section. SA 706 (Revised) indicates this placement when the Other Matter paragraph draws attention to a matter relating to other reporting responsibilities already addressed in the auditor's report.

  1. AIn the Report on Other Legal and Regulatory Requirements sectionCorrect
  2. BOnly in the Key Audit Matters section
  3. COnly immediately after the Basis of Opinion section
  4. DOnly in the management's responsibility section

Explanation

SA 706 (Revised) says that when an Other Matter paragraph draws attention to a matter relating to Other Reporting Responsibilities addressed in the report, it may be included in the Report on Other Legal and Regulatory Requirements section. The other locations listed are not what the standard indicates for this case.

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