Many have called for the auditor’s report to be more informative and relevant therefore many changes...

Many have called for the auditor’s report to be more informative and relevant therefore many changes happened in the auditor report in the last five years. especially ISA 706 , which is about “Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report. So you are required to show the reasons for the changes in ISA 706 and what is the impact of these changes on the auditor and other stockholders (Please write the answer so I can copy it)

Solutions

Expert Solution

Answers;

Sometimes the auditor considers it necessary to draw the user's attention to a matter presented or disclosed in the financial statement that, in the auditor's judgement , is of such importance that it is fundamental to user's understanding of the financial statements, the auditor shall include an Emphasis of Matter paragraph in the auditor's report provided the auditor has obtained sufficient appropriate audit evidence that the matter is not materially misstated in the financial statements.

If the auditor considers it necessary to communicate a matter other than those are presesnted or disclosed in the financial statement that, in the auditor's judgement is relevant to user's understanding of the audit, the auditor's responsibilities or the auditor's reposrt and this is not prohibited by law or regulation, the auditor shall do so in a pragraph in the auditor's report, with the heading other matter or other appropriate heading.

Hit like if it was helpful

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Many have called for the auditor’s report to be more informative and relevant therefore many changes...

Many have called for the auditor’s report to be more informative and relevant therefore many changes happened in the auditor report in the last five years. especially ISA 701 , which is about “Communicating Key Audit Matters in the Independent Auditor’s Report. So you are required to show the reasons for the changes in ISA 701 and what is the impact of these changes on the auditor and other stockholders (Please write the answer so I can copy it)

What impact would the following changes have on the security market line and therefore on the...

What impact would the following changes have on the security market line and therefore on the required return for a given level of risk? (a) an increase in inflationary expectations, (b0 Investors become less risk-averse.

You have been the auditor of Data Ltd for two years. Your auditor’s report for Data...

You have been the auditor of Data Ltd for two years. Your auditor’s report for Data for the year ended 30 June 2018 was unmodified, indicating that in your opinion the financial report gave a true and fair view. In August 2018, Data obtained a large loan from Better Bank Ltd, to provide additional working capital. Subsequently Data suffered severe trading difficulties and was placed into liquidation in late December 2018, with insufficient funds to repay the loan to Better...

The claims department at Wise Insurance Company believes that younger drivers have more accidents and, therefore,...

The claims department at Wise Insurance Company believes that younger drivers have more accidents and, therefore, should be charged higher insurance rates. Investigating a sample of 1,200 Wise policyholders revealed the following breakdown on whether a claim had been filed in the last 3 years and the age of the policyholder. Is it reasonable to conclude that there is a relationship between the age of the policyholder and whether or not the person filed a claim? Use the .05 significance...

Paraphrase below please! ----------------------------------------------- Many of the changes in the welfare system have already reduced and...

Paraphrase below please! ----------------------------------------------- Many of the changes in the welfare system have already reduced and may continue to reduce the number of people receiving welfare. For example, under the current reforms, states receive block grants from the federal government to help finance their welfare programs. This system allows states to save money if they spend less in benefits: reducing benefits does not reduce the amount of federal money they receive. Time limits will also, by definition, reduce the number...

how many banks does the United States have compared to other countries? That is, many more...

how many banks does the United States have compared to other countries? That is, many more or far fewer? Briefly, what factors explain the great disparity?

Many changes have occurred in the Poultry industry over the last century. Housing systems are a...

Many changes have occurred in the Poultry industry over the last century. Housing systems are a topic of constant debate. Select two types of housing systems and summarize how they are designed. If you were a poultry farmer, which system(s) would you utilize to raise your birds. Explain why and discuss what potential issues/challenges you could face by utilizing this system?

LASIK procedures have become more accessible and much more common in recent years. Many patients are...

LASIK procedures have become more accessible and much more common in recent years. Many patients are attracted to the idea of LASIK, as it can eliminate the need for glasses or contact lenses. Research LASIK and the associated risks and benefits. For your original post, choose one of the vision problems that can be corrected by LASIK. Discuss how this problem affects the physiology vision and how LASIK can be used to correct this problem.

Many organizations have a general status called a " quality policy." This statement is often vague,...

Many organizations have a general status called a " quality policy." This statement is often vague, eg: the organization will supply the customer with "high quality". Obtain 3 example of such a statement and explain how it could be maid more specific. provide a source for each quality statement

Many equipment replacement or outsourcing decisions have relevant qualitative considerations, which may impact the acceptance of...

Many equipment replacement or outsourcing decisions have relevant qualitative considerations, which may impact the acceptance of a quantitative evaluation, regardless of the calculated outcome. For instance, Steve Smith has completed an analysis of budgeted volumes for the U.S. division of Swiss Chocolate Company for the coming year, and noted that the firm’s direct labor cost of production is significantly less per unit than its Swiss affiliate plant, but is higher than its Mexican affiliate plant. The Swiss corporate office has...

Subjects