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Chapter 10 3 4
3.3 Other Matter paragraph
ISA 706 (Revised)
Purpose
An Other Matter paragraph is included in the auditor's report if the auditor considers it
necessary to communicate to the users regarding matters that are not presented or
disclosed in the financial statements that, in the auditor's judgment, are relevant to
understanding the audit, the auditor's responsibilities, or the auditor's report.
To communicate that the auditor's report is intended solely for the intended
users, and should not be distributed to or used by other parties.
When law, regulation or generally accepted practice requires or permits the
auditor to provide further explanation of their responsibilities.
Position in the auditor's report
When an Other Matter paragraph is included to draw user's attention to a matter
relating to other reporting responsibilities addressed in the auditor's report, the
paragraph may be included in the Report on Other Legal and Regulatory
Requirements section.
When relevant to all auditors’ responsibilities or users' understanding of the auditor's
report, the Other Matter paragraph may be included as a separate section following
the Report on the Other Legal and Regulatory Requirements.
Tutorial notes:
An Other Matter paragraph does not include confidential information or
information required to be provided by management
The heading may be amended to provide further context, for example, Other
Matter – Scope of the audit.
Illustrations and further practice
Look at Illustration 4 in Chapter 10 for an example of an other matter paragraph.
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