It is used, for example, to state that the prior period was audited by another auditor or that the use of the report is restricted. It does not modify the opinion.
Source: BDS 706
Related terms
Emphasis of matter paragraphA paragraph in the auditor's report drawing attention to a matter appropriately disclosed in the financial statements that is fundamental to users' understanding.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.Opening balancesAccount balances existing at the beginning of the audited period, based on the prior period's closing balances; they are additionally verified in first-year audits.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.