It does not modify the opinion; it is used, for example, for a significant litigation uncertainty or an exceptional event. If the matter is not disclosed or is misstated, the opinion is modified instead.
Source: BDS 706
Related terms
Independent auditor's reportThe formal report in which the auditor sets out in writing the opinion reached on the financial statements and the basis for that opinion.Other matter paragraphA paragraph in the auditor's report referring to a matter not presented in the financial statements that is relevant to understanding the audit, the auditor's responsibilities or the report.Key audit mattersMatters that, in the auditor's professional judgement, were of most significance in the audit of the current-period financial statements and are described separately in the report.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 31, 2026 · This definition is for general information only.