In short
An other-matter paragraph in the auditor's report refers to a matter that is not presented or disclosed in the financial statements but is relevant to users' understanding of the audit, the auditor's responsibilities or the report.
Key takeaways
- Examples: the prior year was audited by another auditor, or the report's use is restricted.
- It doesn't change the opinion.
- An emphasis-of-matter paragraph, by contrast, refers to a matter that is presented or disclosed in the statements.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor is unable to observe the physical inventory count or satisfy themselves through alternative procedures, and inventory represents 60% of total assets. What opinion is appropriate?