Page 183 - AAA Integrated Workbook STUDENT S18-J19

Reporting

Modified report with unmodified opinion

3.1 Material Uncertainty Related to Going Concern

ISA 570 (Revised) Going Concern

Purpose

Included when there is a material uncertainty regarding the going concern status
which the directors have adequately disclosed in the financial statements.

The auditor uses this section to draw the attention of the user to the client's
disclosure note.

Position in the auditor's report

Below the Basis for Opinion section

3.2 Emphasis of Matter paragraph

ISA 706 (Revised) Emphasis of Matter Paragraphs and Other Matter Paragraphs in
an Auditor's Report

Purpose

Used to refer to a matter that has been adequately presented or disclosed in the
financial statements by the directors.

The auditor's judgment is that these matters are of such fundamental importance to
the users' understanding of the financial statements that the auditor should
emphasise the disclosure.

Examples

 Major catastrophes that have had a significant effect on the entity's financial
position.

 An uncertainty relating to the future outcome of exceptional litigation or
regulatory action.

 A significant subsequent event occurs between the date of the financial
statements and the date of the auditor's report.

Position in the auditor's report

Below the Basis for Opinion section.

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