[AUD] Emphasis of matter

Required

1) After Basis

2) heading "Emphasis of Matter"

3) refer in FS note, change in detail

4) opinion is not modified

 

Circumstances for Emphasis of matter

1. GAAS required

  1) inconsistency in application of GAAP

      GAAP to GAAP > UM +EM

       - new accounting principle is GAAP

       - change is proper

       - disclosueres adequate

       - justified

        * changes in estimate, reclassification > UM (EM x) 

      Correction of Error

      Change in reporting entity

       - cost to consolidation, equity to consolidation

 

2) Departure from a promulgated accounting principle

     new legislation, new type of transaction

 

3) Special purpose finanacial reporting framework

     cash basis, tax basis...

 

2. Auditor's discretionary basis

 4) Substantial doubt has been alleviated

 5) Uncertainty

      uncertaintly not properly disclosed in Note > UM +EM

 6) Other

      - major catastrophe

      - significant transaction w related parties

      - unusally important subsequent events

 

 

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[AUD] Other matter paragraphs