Page 245 - CA Inter Audit PARAM

CA Ravi Taori
As per SA 706 (Revised) on “Emphasis of Matter Paragraphs and Other Matter Paragraphs In The
Independent Auditor’s Report”, the examples of circumstances where the auditor may consider it
necessary to include an Emphasis of Matter paragraph are: -

(a) An uncertainty relating to the future outcome of an exceptional litigation or regulatory action.

(b) A significant subsequent event that occurs between the date of the financial statements and the
date of the auditor’s report.

(c) Early application (where permitted) of a new accounting standard that has a material effect on
the financial statements.

(d) A major catastrophe that has had, or continues to have, a significant effect on the entity's
financial position.

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