Page 184 - AAA Integrated Workbook STUDENT S18-J19

Chapter 11 4

When a Key Audit Matters section is presented in the auditor’s report, an Emphasis
of Matter paragraph may be presented either directly before or after the Key Audit
Matters section, based on the auditor’s judgment as to the relative significance of the
information included in the Emphasis of Matter paragraph.

Tutorial notes:

 An Emphasis of Matter paragraph is not used to draw attention to immaterial
misstatements. The fact that they are immaterial means they do not warrant
the attention of the shareholders.

 An Emphasis of Matter paragraph can only be used when adequate disclosure
has been made of the matters mentioned above. The auditor can only
emphasise something that is already included.

 Where adequate disclosure has not been made the opinion will need to be
modified and an Emphasis of Matter paragraph should NOT be used.

 The heading of the paragraph can be amended to provide further context, for
example, Emphasis of Matter – Subsequent event.

 INT Syllabus: An Emphasis of Matter should not be used to highlight an issue
already included in the Key Audit Matters section. The auditor must use
judgment to determine which section they consider is the most appropriate to
highlight the issue.

 UK Syllabus: Law or regulation may require a matter to be emphasised in the
auditor’s report in addition to communicating such a matter as a key audit
matter.

Illustrations and further practice

Look at the example of an Emphasis of Matter paragraph in Chapter 11

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