If the auditor considers it necessary to draw users’ attention to a matter presented or disclosed in the financial report that, in the auditor’s judgement, is of such importance that it is fundamental to users’ understanding of the financial report, the auditor shall include an Emphasis of Matter paragraph in the auditor’s report provided: (Ref: Para. A5–A6)

1. The auditor would not be required to modify the opinion in accordance with ASA 705^[4] as a result of the matter; and
2. When ASA 701 applies, the matter has not been determined to be a key audit matter to be communicated in the auditor’s report.  (Ref: Para. A1–A3)

When the auditor includes an Emphasis of Matter paragraph in the auditor’s report, the auditor shall:

1. Include the paragraph within a separate section of the auditor’s report with an appropriate heading that includes the term “Emphasis of Matter”;
2. Include in the paragraph a clear reference to the matter being emphasised and to where relevant disclosures that fully describe the matter can be found in the financial report.  The paragraph shall refer only to information presented or disclosed in the financial report; and
3. Indicate that the auditor’s opinion is not modified in respect of the matter emphasised.  (Ref: Para. A7–Aus A8.1, A16–A17)

If the auditor considers it necessary to communicate a matter other than those that are presented or disclosed in the financial report that, in the auditor’s judgement, is relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report, the auditor shall include an Other Matter paragraph in the auditor’s report, provided:

1. This is not prohibited by law or regulation; and
2. When ASA 701 applies, the matter has not been determined to be a key audit matter to be communicated in the auditor’s report.  (Ref: Para. A9–A14)

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.  (Ref: Para. A15–A17)

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.  (Ref: Para. A18)