Learning ObjectivesLO1 Describe the role of professional judgment in achieving the overall objectives of the independent auditor in conducting an audit of financial statements as set out in CAS 200.LO2 Explain how accumulated misstatements are evaluated at the conclusion of an audit to form an opinion on the fair presentation of general purpose financial statements.LO3 Describe the different forms of audit opinion and the decisions underlying the auditor’s choice of form.LO4 Explain the purpose of emphasis of matter (EOM) and other matter (OM) paragraphs in an audit report.LO5 Summarize the auditor’s communications throughout and at the conclusion of the engagement.

1

SIGNIFICANT MATTER PARAGRAPHS: ADDITIONAL INFORMATION IN THE AUDIT REPORT

There are two types of additions possible under CAS 706: emphasis of matter (EOM) paragraphs or other matter (OM) paragraphs.

EOM paragraphs are required when a material uncertainty regarding the going concern assumption is properly disclosed, and an unmodified opinion is given.

OMs can refer to other information included with the financial statements, such as MD&A or comparative information from other periods,

LO4

2