fairly” is one of those widely used accounting terms that is never defined in any “Present standard. As auditor, you must provide an intuitive, reasonable, if not authoritative, explanation of its meaning a good starting point is that fair presentation means not to mislead, but to tell the – truth about economic reality using an acceptable accounting framework. LO7 Explain the purpose of significant matter paragraphs The purpose of the significant matters paragraphs is to draw users' attention, when in the auditor's judgment it is necessary to do so, by way of clear additional communication in the auditor's report, to either a matter, although appropriately presented or disclosed in the financial statements, that is of such importance that it is fundamental to users' understanding of the financial statements, or as appropriate, any other matter that is relevant to users' understanding of the audit, the auditor's responsibilities, or the auditor's report.
“Present fairly” is one of those widely used accounting terms that is never defined in any standard. As auditor, you must provide an intuitive, reasonable, if not authoritative, explanation of its meaning – a good starting point is that fair presentation means not to mislead, but to tell the truth about economic reality using an acceptable accounting framework. LO7 Explain the purpose of significant matter paragraphs The purpose of the significant matters paragraphs is to draw users' attention, when in the auditor's judgment it is necessary to do so, by way of clear additional communication in the auditor's report, to either a matter, although appropriately presented or disclosed in the financial statements, that is of such importance that it is fundamental to users' understanding of the financial statements, or as appropriate, any other matter that is relevant to users' understanding of the audit, the auditor's responsibilities, or the auditor's report.
SB7e_WYRNTK_Ch04.docx