Circumstances where an "other matter" paragraph may be necessary include
A)the paragraph is relevant to the user's understanding of the audit
B)the paragraph is relevant to the user's understanding of management's responsibilities or the auditor's report
C)the paragraph explains that the reporting is done on more than one set of financial statements
D)the paragraph explains that the reporting is done on more than one entity
E)the paragraph explains that the opinion pertains to more than one set of financial statements
F)both A and C
G)both B and D
H)both C and E

Question

Quizplus · Accepted Answer

An "other matter" paragraph may be necessary if it is relevant to the user's understanding of the audit (choice A) and/or it explains that the reporting is done on more than one set of financial statements (choice C). Choice B pertains to the management's responsibilities or the auditor's report, which may require a separate paragraph but not an "other matter" paragraph. Choice D and E are regarding the reporting on multiple entities or financial statements, which may require an explanatory paragraph but not necessarily an "other matter" paragraph. Therefore, the best choices are F (both A and C).

Circumstances Where an "Other Matter" Paragraph May Be Necessary Include