Opinions and reports
The Extra Paragraph
Emphasis-of-matter, other-matter, and key audit matters each have a distinct job, and none changes the opinion.
How the exam words it
- -The stem adds a paragraph or section without changing the opinion.
- -It distinguishes emphasis-of-matter from other-matter from a key audit matter.
- -A predecessor audited the prior comparative period.
- -It asks about the audit report date.
The playbook
- 1Emphasis-of-matter points to something properly presented in the statements, other-matter points to something outside them, such as a predecessor's report.
- 2Key audit matters describe the matter, why it mattered, and how it was addressed, and are reported when the auditor is engaged to do so.
- 3None of these modifies the opinion, and the report is dated when sufficient appropriate evidence was obtained.
The trap
Treating an emphasis-of-matter paragraph as a modified opinion. It draws attention without changing the opinion.
How the exam varies it
The same pattern, re-skinned along these axes:
Emphasis-of-matter versus other-matter versus key audit matterWithin the statements versus outside themWhich paragraph, or the report date
Drill this pattern
8 questions of The Extra Paragraph from across the AUD topics. Clear it by getting 5 right with a streak of 3.