What it is
Emphasis-of-matter and other-matter paragraphs add information to an audit report without modifying the opinion. Going concern is different: where substantial doubt remains and the disclosure is adequate, the report carries a separate section with its own heading, not an emphasis paragraph.
This template lays out where each section sits in a report, four going concern outcomes, a table of emphasis-of-matter examples (subsequent event, litigation, catastrophe, related parties, accounting change), a table of other-matter examples (predecessor audit, prior period, restricted use) and notes on key audit matters, other information and supplementary information.
When to use it
- A note discloses a matter fundamental to users’ understanding that you want to draw attention to.
- A predecessor auditor audited the prior year and the report needs to refer to it.
- Substantial doubt about going concern exists and the report needs the right section and wording.
What’s inside
- Where each section sits in the report
- Going concern outcomes A to D: adequate disclosure, plans alleviate doubt, inadequate disclosure, management unwilling
- Emphasis-of-matter paragraph examples for six common situations
- Other-matter paragraph examples: predecessor, prior period, restriction on use
- Notes on key audit matters, other information and supplementary information sections
Standard cited
This template follows AU-C 706 / AU-C 570. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 706 explained, AU-C 570 explained.
Questions
Is a going concern paragraph an emphasis-of-matter?
Not in the current report structure. Where substantial doubt remains and the financial statements adequately disclose it, the auditor includes a separate section with a heading such as “Substantial Doubt About [Entity]’s Ability to Continue as a Going Concern” and says the opinion is not modified. The heading has to refer to the substantial doubt about going concern.
When can I use an emphasis-of-matter paragraph?
When a matter is appropriately presented or disclosed in the financial statements and is fundamental to users’ understanding. It does not replace a modification where the financial statements are misstated.
What is an other-matter paragraph for?
A matter not presented or disclosed in the financial statements that the auditor judges relevant to users’ understanding of the audit, the auditor’s responsibilities or the report, such as the predecessor’s audit of a prior period.
Are key audit matters required?
Only where the auditor is engaged to communicate them (AU-C 701). They are not part of a standard nonissuer report.
Related templates
- Independent Auditor's Report — Unmodified Opinion (AU-C 700)
- Going Concern Evaluation Memo (AU-C 570 / ASC 205-40)
- Subsequent Events Checklist and Memo (AU-C 560 / ASC 855)
Last updated 11/05/2026. All free templates.