Document ID: chunk:federal_register_of_legislation:F2023C00335:body:0:p6
Version: federal_register_of_legislation:F2023C00335
Segment Type: other
Provision Reference: 
Character Range: 15191–18134

understanding of the audit, the auditor's responsibilities or the auditor's report, the auditor shall include an Other Matter paragraph in the auditor's report, provided:

(a)                This is not prohibited by law or regulation; and

(b)                When ASA 701 applies, the matter has not been determined to be a key audit matter to be communicated in the auditor's report.  (Ref: Para. A9–A14)

11.               When the auditor includes an Other Matter paragraph in the auditor's report, the auditor shall include the paragraph within a separate section with the heading "Other Matter," or other appropriate heading.  (Ref: Para. A15–A17)

Communication with Those Charged with Governance

12.               If the auditor expects to include an Emphasis of Matter or an Other Matter paragraph in the auditor's report, the auditor shall communicate with those charged with governance regarding this expectation and the wording of this paragraph.  (Ref: Para. A18)

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Application and Other Explanatory Material

The Relationship between Emphasis of Matter Paragraphs and Key Audit Matters in the Auditor's Report (Ref: Para. 2, 8(b))

A1.             Key audit matters are defined in ASA 701 as those matters that, in the auditor's professional judgement, were of most significance in the audit of the financial report of the current period.  Key audit matters are selected from matters communicated with those charged with governance, which include significant findings from the audit of the financial report of the current period.[5]  Communicating key audit matters provides additional information to intended users of the financial report to assist them in understanding those matters that, in the auditor's professional judgement, were of most significance in the audit and may also assist them in understanding the entity and areas of significant management judgement in the audited the financial report.  When ASA 701 applies, the use of Emphasis of Matter paragraphs is not a substitute for a description of individual key audit matters.

A2.             Matters that are determined to be key audit matters in accordance with ASA 701 may also be, in the auditor's judgement, fundamental to users' understanding of the financial report.  In such cases, in communicating the matter as a key audit matter in accordance with ASA 701, the auditor may wish to highlight or draw further attention to its relative importance.  The auditor may do so by presenting the matter more prominently than other matters in the Key Audit Matters section (e.g., as the first matter) or by including additional information in the description of the key audit matter to indicate the importance of the matter to users' understanding of the financial report.

A3.             There may be a matter that is not determined to be a key audit matter in accordance with ASA 701 (i.e., because it did not require significant auditor attention),