EMPHASIS OF MATTER AND OTHER MATTER PARAGRAPH Objective is to draw users attention by way of additional communication for matters

s reflected or presented in the Financial Statements (BY including Emphasis of matter paragraph) or for matters related to audit report, auditors responsibility (by including other matter paragraph)

Emphasis shall only be included on an issue when the auditor has obtained SAAE that the matter is not materially misstated. (That means that there is no misstatement or a scope limitation on that issue) Emphasis is included after the opinion paragraph and would refer to the fact the opinion is not modified with respect to the matter being emphasized Other matter paragraph is generally included after the opinion and emphasis of matter paragraph(if any) Examples of Emphasis may be ( uncertainity regarding a litigation or a going concern. Provided that the auditor has obtained SAAE that they are not materially misstated.) ISA limits the use of an Emphasis of Matter paragraph to matters presented or disclosed in the financial statements. inclusion of an Emphasis of Matter paragraph in the auditors report does not affect the auditors opinion Inclusion of Emphasis is not a substitute of a qualified/Adverse/Disclaimer or a disclosure required by FRFW Example of an other matter paragraph is a situation where the auditor is not able to withdraw from the audit, even when there is a scope limitation by management and the impact is pervasive Another example of other matter paragraph could be a situation where the auditor is issuing a report on a specific purpose FS and may want to include the other matter paragraph to highlight that the use of the report is for a specific purpose and not general purpose There are certain ISAs that require inclusions of emphasis or other matter paragraphs in the report