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

Which statement about an Other Matter paragraph included to draw attention to a matter relating to the auditor's other reporting responsibilities is correct under SA 706 (Revised)?

Such an Other Matter paragraph may be included in the Report on Other Legal and Regulatory Requirements section, because the matter relates to the auditor's other reporting responsibilities. It is not tied to the Basis of Opinion section or to modified opinions.

  1. AIt may be included in the Report on Other Legal and Regulatory Requirements sectionCorrect
  2. BIt must always be placed immediately after the Basis of Opinion section
  3. CIt may be included only in the Key Audit Matters section
  4. DIt is allowed only when the opinion is modified

Explanation

SA 706 (Revised) states 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. Placement near the Basis of Opinion relates to EOM on the reporting framework.

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