Page 144 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

• Last year related.

o No audit was conducted in previous year.
o Someone else performed the audit of previous year.
• CY related.
o Audit of branches, subsidiaries done by another auditor

• End of year
o Auditor reported more than one set of FST in case of multiple FRF. (e.g. :- Ind AS, IFRS, US GAAP)
o If auditor wants to restrict distribution & use of audit report then auditor can explain in 'other

matter para’.
III. Heading & Content of OMP:
Paragraph with Appropriate Heading: When the auditor includes an Other Matter paragraph in the auditor’s
report, the auditor shall include the paragraph within a separate section with the heading “Other Matter,” or
other appropriate heading.
IV. Placement
➢ It is not clearly mentioned, but after analysis we can conclude that OMP should be placed always below
KAM, it may not be immediately after KAM but any suitable position below it.
➢ To distinguish KAM and information given in OMP we can add more words to the heading so that user can
differentiate between KAM & OMP like other matter – Scope of audit.
➢ If matter in OMP is related to 'other reporting responsibility' then we can place it in section 'Report on other
legal and regulatory requirement'
➢ If matter is such that it is important for all auditor's responsibility and understanding of his audit report then
it may be included after 'Report on FST' and 'Report on other legal and regulatory requirement'.

(CNO - SA 706.080) Is there any duty to communicate with Those Charged with Governance?
If the auditor expects to include an Emphasis of Matter or an Other Matter paragraph in the auditor’s report, the
auditor shall communicate with those charged with governance regarding this expectation and the wording of
this paragraph.

(CNO - SA 706.100) KAM V/s EMP
KAM EMP
Definition Matters that, in the auditor’s A paragraph in the auditor’s report
judgment, were of most referring to a matter presented or
significance in the audit of the disclosed in the financial
financial statements. Selected from statements. In the auditor’s
matters communicated with those judgment, it is fundamental to
charged with governance. [SA 701] users’ understanding. [SA 706]
Matters Fundamental to Matters deemed as key audit Matters not determined as key audit
Understanding of User matters may also be fundamental to matters can still be fundamental to
users' understanding. The auditor users. Such matters can be
may highlight or draw further highlighted in the Emphasis of
attention to its relative importance. Matter paragraph.
Purpose of Communication Provides additional information to Points to a matter in the financial
financial statement users. Assists in statements that is fundamental to
understanding significant matters users' understanding.
and areas of management judgment
in audited financial statements.

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