necessary to even come to a breakeven point The continuing failure of the

Necessary to even come to a breakeven point the

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necessary to even come to a breakeven point”“The continuing failure of the shopping center made the fate of the Lakeside Store toappear quite uncertain to King and Company”Requirements Other Matter Paragraphs in the Auditor’s Report If the auditor considers it necessary to communicate a matter other than those that arepresented or disclosed in the financial statements that, in the auditor’s judgment, is relevant tousers’ understanding of the audit, the auditor’s responsibilities or the auditor’s report and this isnot prohibited by law or regulation, the auditor shall do so in a paragraph in the auditor’s report,with the heading “Other Matter,” or other appropriate heading. The auditor shall include thisparagraph immediately after the Opinion paragraph and any Emphasis of Matter paragraph, orelsewhere in the auditor’s report if the content of the Other Matter paragraph is relevant to theOther Reporting Responsibilities section. (Ref: Para. A5-A11) King and Company came up with the aforementioned extra paragraph because of thefollowing observations: 5) Lakeside has recently created a profit-sharing bonus plan. Why might such anincentive be a special concern to an auditor?
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