ASA 706 - Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report - December 2015
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Part COMPILATION DETAILS - ASA 706 - Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report - December 2015 - COMPILATION DETAILS | Zoe
ISSN 1833‑4393
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Emphasis of Matter Paragraphs in the Auditor’s Report................................8-9
Other Matter Paragraphs in the Auditor’s Report...................................10-11
Communication with Those Charged with Governance.................................12
Application and Other Explanatory Material
The Relationship between Emphasis of Matter Paragraphs and Key Audit Matters in the Auditor’s Report A1-A3
Circumstances in Which an Emphasis of Matter Paragraph May Be Necessary.............A4-A6
Including an Emphasis of Matter Paragraph in the Auditor’s Report................A7-Aus A8.1
Other Matter Paragraphs in the Auditor’s Report.................................A9-A15
Placement of Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Auditor’s ReportA16-A17
Communication with Those Charged with Governance................................A18
Appendix 1: List of Australian Auditing Standards Containing Requirements for Emphasis of Matter Paragraphs
Appendix 2: List of Australian Auditing Standards Containing Requirements for Other Matter Paragraphs
Appendix 3: Illustration of an Auditor’s Report that Includes a Key Audit Matters Section, an Emphasis of Matter Paragraph, and an Other Matter Paragraph
Appendix 4: Illustration of an Auditor’s Report Containing a Qualified Opinion Due to a Departure from the Applicable Financial Reporting Framework and that Includes an Emphasis of Matter Paragraph
COMPILATION DETAILS
Auditing Standard ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report (as Amended)
This compilation takes into account amendments made up to and including 15 March 2023 and was prepared on 22 March 2023 by the Auditing and Assurance Standards Board (AUASB).
This compilation is not a separate Auditing Standard made by the AUASB. Instead, it is a representation of ASA 706 (December 2015) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
Standard
Date made
Operative Date
ASA 706 [A]
1 December 2015
Financial reporting periods ending on or after 15 December 2016
ASA 2020-2 [B]
30 June 2020
Financial reporting periods ending on or after 15 July 2020
ASA 2023-1 [C]
15 March 2023
Financial reporting periods commencing on or after 1 January 2023
[A] Federal Register of Legislation – registration number F2015L02037, 16 December 2015
[B] Federal Register of Legislation – registration number F2020L00885, 7 July 2020
[C] Federal Register of Legislation – registration number F2023L00295, 21 March 2023
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
Appendix 3
Amended
ASA 2020‑2 [62] and [63]
Appendix 4
Amended
ASA 2020-2 [64] and [65]
Appendix 3
Amended
ASA 2023-1 [36]
Appendix 4
Amended
ASA 2023-1 [37]
AUTHORITY STATEMENT
Auditing Standard ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report (as amended to 15 March 2023) is set out in paragraphs Aus 0.1 to A18 and Appendices 1 to 4.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied. This Auditing Standard is to be read also in conjunction with ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Conformity with International Standards on Auditing
This Auditing Standard conforms with International Standard on Auditing ISA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISA) are identified with the prefix “Aus”.
The following application and other explanatory material is additional to ISA 706:
Paragraph Aus A8.1 refers to requirements under the Corporations Act 2001.
Appendix 3 comprises [Aus] Illustration 1A Example auditor’s report that conforms with the requirements of the Corporations Act 2001.
Appendix 4 comprises [Aus] Illustration 2A Example auditor’s report on a financial report that is not prepared under the Corporations Act 2001.
This Auditing Standard incorporates terminology and definitions used in Australia.
The equivalent requirements and related application and other explanatory material included in ISA 706 in respect of “relevant ethical requirements”, have been included in Auditing Standard, ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. There is no international equivalent to ASA 102.
Compliance with this Auditing Standard enables compliance with ISA 706.