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When is an other-matters paragraph required to be included in an unmodified opinion?

An other-matter paragraph is required when the following is applicable to an audit engagement:

1) Subsequently discovered facts that lead to a change in an audit opinion (the auditor may elect to use an emphasis of matters paragraph in this situation as well).

2) Comparative financial statements are used with financial statements that are either reviewed or compiled from the prior period.

3) Comparative financial statements are used with financial statements that are unaudited from the prior period.

4) When the auditor includes a restricted use alert.

5) When the auditor has elected to report on supplementary information, and that information is presented in conjunction with the audit report, rather than presented separately.

6) When the auditor refers to required supplementary information.

7) When the financial statements of the period prior have been audited by a predecessor auditor.

8) When an auditor is reporting on compliance, and that report is included in the auditor’s report.

9) If the component auditor includes a modified opinion in their report, the auditor of the group financial statements should make reference to the components modified opinion in either an emphasis-of-matters paragraph or an other-matter paragraph.

10) When the auditor identifies material inconsistencies prior to the audit report date.

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    An Emphasis of matter’s paragraph will be presented subsequent to the opinion paragraph. The required paragraphs always come first, with the optional paragraphs after!

  • What is included in the introductory paragraph in an unmodified opinion?

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  • What are the required paragraphs in an unmodified opinion?

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