Skip to content

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

Under SA 700 (Revised), the Emphasis of Matter and Other Matter paragraphs addressed in SA 706 (Revised) relate to which aspect of the auditor's report?

SA 706 (Revised), together with SA 705 (Revised), deals with how the form and content of the auditor's report are affected when a modified opinion, an Emphasis of Matter paragraph or an Other Matter paragraph is included. Key audit matters are covered separately by SA 701.

  1. AThey replace the auditor's need to form an opinion on whether the statements are prepared in all material respects under the framework
  2. BThey deal with how the form and content of the auditor's report are affected, alongside SA 705 (Revised) on modified opinionsCorrect
  3. CThey deal only with the communication of key audit matters
  4. DThey are required only when the opinion is modified

Explanation

SA 700 (Revised) states that SA 705 (Revised) and SA 706 (Revised) deal with how the form and content of the report are affected when a modified opinion, an Emphasis of Matter paragraph or an Other Matter paragraph is included. Key audit matters fall under SA 701. The auditor still must form an opinion.

Did you get it right without looking?

One question tells you little. A timed set on Forming an Opinion and Reporting shows your real accuracy, how long you take and where you lose marks.

Practise Forming an Opinion and ReportingFree diagnostic mock

More Forming an Opinion and Reporting questions