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SA 706

Auditing

Point 1 b and point 2 1st paras are condradiction to each other , can I get explanation please

Rakesh Prabhu

CA Final

★ 2K+

25-Jul-20 17:34

361

Answers (1)

1a & 1b are the reasons or purpose for including Emphasis of matter para in the auditor's report. 1a talks about items included & disclosed in financial staements but which need further explanation to understand the financial statements and that is given in para 2. 1b talks about those items (which are not part of financial staements ) which need further explanation by the auditor so that user understands the auditor's report or work better.