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CMA Intermediate · Corporate Accounting and Auditing · Audit Report and Reporting under CARO

When an Other Matter paragraph is relevant to all the auditor's responsibilities or to users' understanding of the auditor's report, where may it be included according to SA 706 (Revised)?

It may be included as a separate section following both the Report on the Audit of the Financial Statements and the Report on Other Legal and Regulatory Requirements, since the matter is relevant to all the auditor's responsibilities or to understanding the report.

  1. AAs a separate section following the Report on the Audit of the Financial Statements and the Report on Other Legal and Regulatory RequirementsCorrect
  2. BOnly within the Basis of Opinion section
  3. COnly before the opinion paragraph
  4. DOnly within the Key Audit Matters section

Explanation

SA 706 (Revised) says such an Other Matter paragraph may be a separate section after both the Report on the Audit of the Financial Statements and the Report on Other Legal and Regulatory Requirements. The other options are not placements the standard prescribes for this case.

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