Acca aa s21 Notes

3.6 Key audit matters
Key audit matters are those matters that were of most significance during the audit.
There is then a full description of these matters in accordance with ISA 701. This is covered in more 
detail below.
3.7 Other matter paragraph (if one)
This paragraph is used, if necessary, to communicate a matter that is not required to be presented or 
disclosed in the financial statements which is relevant to the user's understanding of the audit, the 
auditor's responsibilities or the auditor's report.
Circumstances in which an other matter paragraph may be necessary:
๏
Where the auditor reports on two sets of financial statements prepared under different general 
purpose frameworks (e.g. a national framework and IFRS).
๏
Where the financial statements have been prepared for a specific purpose, to state that the 
auditor's report is solely for the intended users.
๏
In the rare circumstance where the auditor is unable to withdraw from an engagement even 
though a management-imposed limitation on the audit may be pervasive.
3.8 Other information paragraph (if one)
For example, an audit covers the financial statements but does not cover the directors’ report. So 
what if the directors’ report contains something that conflicts with the financial statements? The audit 
opinion 
cannot
be modified because it does not cover the director’s report, but perhaps the 
shareholders need to be alerted to this. This can be done in a paragraph, headed 'Other Information’.
This is 
not
a modification of the audit opinion.
September 2021 to June 2022 exams
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