문단 순서: Basis → Opinion → e-o-m → o-m

Basis

 

■ 위치: A basis for modification paragraph should precede the opinion paragraph.

 

 

 

 

 

 

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※ No Basis

■ If the auditor has contained Unmodified opinion in the report,

○ No basis is given for including an emphasis-of-matter paragraph.

 

 

 

 

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E-o-m

 

■ 위치: An emphasis-of-matter paragraph is placed immediately after the opinion paragraph.

 

■ 정의: An emphasis-of-matter paragraph in the auditor’s report draws users’ attention to a matter appropriately presented or disclosed that is fundamental to their understanding of the financial statements.

 

○An emphasis-of-matter paragraph is used when 

(1) the matter is fundamental to users’ understanding of the statements, 

(2) the auditor considers that drawing users’ attention to the matter is necessary, and 

(3) the matter is appropriately presented and disclosed in the statements. 

 

 

■ 예시

- A justified change in accounting principle requires the auditor to add an emphasis-of-matter paragraph to the report but not to modify the opinion.

 

- When the auditor concludes that substantial doubt exists about an entity’s ability to continue as a going concern for a reasonable period of time, (s)he should include an emphasis-of-matter paragraph (following the opinion paragraph) in the auditor’s report to describe the uncertainty. By itself, this doubt does not require a modification of the opinion. However, if the entity’s disclosures about the issue are inadequate, the misstatement may result in a qualified or an adverse opinion.

 

■ When no E-o-m is required

 

-When the auditor finds that sufficient appropriate audit evidence supports management’s assertions, an unmodified opinion is appropriate and an emphasis-of-matter paragraph is not required.

 

 

■ E-o-m 에 담는 것이 선택(may consider)인 경우

 

Examples of circumstances when the auditor may consider an emphasis-of-matter paragraph to be necessary include

(1) an uncertainty relating to the outcome of unusually important litigation or regulatory action,

(2) a major catastrophe that has had (or continues to have) a significant effect on the entity’s financial position,

(3) significant transactions with related parties, and

(4) unusually important subsequent events.

 

 

■ E-o-m에 꼭 담아야 하는 것

 

If an auditor determines that there is substantial doubt about an entity’s ability to continue operations for a reasonable period, the auditor should include an emphasis-of-matter paragraph in the audit report describing the going-concern issue. 

 

This paragraph should include the terms “substantial doubt” and “going concern”.

 

 

○ The auditor does not have discretion regarding inclusion of the paragraph.

 

 

※ An emphasis-of-matter paragraph is not used to describe an audit procedure.

 

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[AU-C 706] Unmodified opinion with E-o-m 

■ 정의:

Followings may be emphasized when the auditor expresses an unmodified opinion. 

 

(1) going concern doubt

 

-Under U.S. GAAP, a “reasonable period” regarding going-concern issues is 1 year from the date the statements are issued or are available to be issued. 

 

(2) Inconsistent application of GAAP

-A material change in accounting principle raises a consistency issue.

 

(3) Justified departure from GAAP

 

 

■ 예시:

 

-A major catastrophe

-Significant related party transactions 

-An unusually important subsequent event 

-The status of the entity as a component of a larger enterprise

-An accounting matter affecting comparability

 

 

 

참고:

 

By itself, an uncertainty does not result in an opinion modification.

 

https://efforty.tistory.com/14

Substantial Doubt 가 있을때, 어떤 Opinion이 적절할까?

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O-m

 

■ 정의: An other-matter paragraph is used in the auditor’s report to draw users’ attention to any matter relevant to users’ understanding of the auditor’s (1) audit, (2) responsibilities, or (3) report.

 

○Unlike the matter addressed in an emphasis paragraph, the other-matter(paragraph) is not required to be presented or disclosed in the financial statements.

 

○An other-matter paragraph draws users’ attention to matters relevant to their understanding of the auditor’s report. 

 

 

■ 위치: An other-matter paragraph generally is placed immediately after the opinion paragraph and any emphasis-of-matter paragraph.

 

 

■ 예시:

 

○The auditor should state in an other-matter paragraph

(1) that the prior year’s financial statements were audited by another auditor,

(2) the date of the report,

(3) the type of opinion expressed and the reasons for any modification, and

(4) the nature of any emphasis-of-matter or other-matter paragraph.

 

Furthermore, the predecessor auditor is not named.

 

 

 

○If required supplementary information is presented with the financial statements, an other-matter paragraph is included in the auditor’s report.