Conformity with International Standards Conformity with International Standards on Auditing

Conformity with International Standards on Auditing

37 Except as noted below, this Auditing Standard conforms with International Standard on Auditing ISA 701 Modifications to the Independent Auditor's Report, issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. The main differences between this Auditing Standard and ISA 701 are:

• In this Auditing Standard, use of an emphasis of matter paragraph is permitted to highlight only a “significant uncertainty” relating to a going concern problem (paragraph 9). However, ISA 701 requires the auditor to modify the auditor’s report by adding an emphasis of matter paragraph to highlight a “material matter regarding a going concern problem”.
• In this Auditing Standard, an auditor is required to modify the auditor’s report if there is a significant uncertainty (other than a significant uncertainty regarding a going concern problem), by using an emphasis of matter paragraph (paragraph 11). However, ISA 701 requires an auditor to consider modifying the auditor’s report if there is a significant uncertainty.
• In this Auditing Standard, mandatory requirements and explanatory guidance are provided:

♦ when an auditor concurs with additional disclosures in the financial report;

♦ when information in a document containing the audited financial report is materially inconsistent with that financial report; and

♦ when subsequent events result in a new auditor’s report on a revised financial report (paragraphs 15 to 19),

however, ISA 701 does not.

• This Auditing Standard does not permit use of an emphasis of matter paragraph to report on matters other than those affecting the financial report (paragraph 8). Furthermore, this Auditing Standard provides reference to ASA 700 when an auditor has additional reporting responsibilities (paragraph 20). However, ISA 701 allows an emphasis of matter paragraph to be used for other reporting responsibilities on matters other than those affecting the financial report.
• In this Auditing Standard, matters subject to qualification are required to be quantified. If they are incapable of being measured reliably, a statement to that effect and the reasons therefore shall be disclosed in the auditor’s report (paragraph 25). However, ISA 701 requires quantification of the possible effects of a qualification "unless impracticable".
• In this Auditing Standard, mandatory requirements and explanatory guidance are provided when a major component of a financial report has been omitted or fundamentally misstated (paragraphs 27 to 28). However, ISA 701 does not.
• In this Auditing Standard mandatory requirements are provided when additional disclosures have been included in a financial report (paragraph 34). However, ISA 701 does not.