FYI: When is an Other Matter paragraph REQUIRED?

1. When the opinion expressed on the prior year’s financial statements is different from the opinion previously expressed (due to management’s correction of a material departure from the applicable financial reporting framework) 2. When the prior period’s financial statements were audited by a predecessor auditor whose report on those financial statements is not reissued 3. When the current period’s financial statements have been audited and the prior period’s financial statements were compiled or reviewed (discussed in later lessons related to Statements on Standards for Accounting and Review Services) and the report on the prior period’s financial statement is not reissued 4. When the prior period’s financial statements were not audited, reviewed, or compiled—The status of those financial statements should be so marked; the other-matter paragraph should state that those financial statements have not been audited, reviewed, or compiled 5. When financial statements have been presented using certain special-purpose frameworks 6. When the entity presents “supplementary information” (derived from the underlying accounting records) with the financial statements and the auditor does not issue a separate report on that supplementary information 7. When a designated accounting standard-setting body requires certain supplementary information to be reported in the financial statements—The auditor should add an other-matter paragraph to address the supplementary information 8. When a report on compliance with contractual or regulatory requirements is combined with the auditor’s report on financial statements—The auditor should add an other-matter paragraph to address those compliance issues and to restrict the distribution of the report to specified parties 9. When auditing the financial statements of an employee benefit plan subject to ERISA