In this chapter, the learning objectives are: Know the situations that result in the addition of explanatory language to the standard unqualified audit report, be able to explain the conditions that lead to a departure from the standard unqualified/unmodified audit report. | Chapter Eighteen Reports on Audited Financial Statements The Standard Audit Report with an Unmodified Opinion The standard audit report with an unmodified opinion is issued when the financial statements conform to the applicable financial reporting framework. Nine Elements Report title Addressee Introductory paragraph Management’s responsibility Auditor’s responsibility Auditor’s opinion Auditor’s signature Audit report date. Auditor’s address The Standard Audit Report with an Unmodified Opinion – Prior ISA 700 An Emphasis of Matter Paragraph and an Other Matters Paragraph An emphasis of matter paragraph does not affect the auditor’s opinion because it can only be included in the audit report if the matter is presented or disclosed in the financial statements in accordance with the applicable financial reporting framework. An other matters paragraph does not affect the auditor’s opinion because it relates to matters other than those required to be presented or disclosed in the financial statements. An Emphasis of Matter Paragraph for a Going-Concern Uncertainty Emphasis of Matter Paragraphs The matter is both unusual and of fundamental importance to the user’s understanding of the financial statements. Significant uncertainties. Significant and unusual related party transactions. Early application of a new accounting principle. A subsequent event disclosed in the financial statements. A matter such as a major catastrophe which is disclosed in a note to the financial statements, that has had, or continues to have, a significant effect on the entity’s business or operations. An Emphasis of Matter Paragraph for a Significant Uncertainty Other Matters Paragraphs Avoidance of auditor association with misleading information in a document containing audited financial statements. Matters that provide further explanation of the auditor’s responsibilities in the audit of the financial statements or of the auditor’s report thereon that the auditor may be required or permitted | Chapter Eighteen Reports on Audited Financial Statements The Standard Audit Report with an Unmodified Opinion The standard audit report with an unmodified opinion is issued when the financial statements conform to the applicable financial reporting framework. Nine Elements Report title Addressee Introductory paragraph Management’s responsibility Auditor’s responsibility Auditor’s opinion Auditor’s signature Audit report date. Auditor’s address The Standard Audit Report with an Unmodified Opinion – Prior ISA 700 An Emphasis of Matter Paragraph and an Other Matters Paragraph An emphasis of matter paragraph does not affect the auditor’s opinion because it can only be included in the audit report if the matter is presented or disclosed in the financial statements in accordance with the applicable financial reporting framework. An other matters paragraph does not affect the auditor’s opinion because it relates to matters other than those required to be presented or disclosed in the .
