What must be included in a report if it is based on a regulatory or contractual basis?

When a report is based on a regulatory or contractual basis, it is crucial to include an emphasis of matter paragraph and a description of the purpose. This inclusion serves multiple functions: it highlights significant issues, provides context about the report's foundation, and clarifies the rationale for the regulatory or contractual analysis.

An emphasis of matter paragraph is essential in these reports as it allows the auditors to draw attention to specific aspects that are important for understanding the report's conclusions and the conditions under which the work was performed. This helps users to recognize the potential implications or constraints of the findings based on the regulatory requirements or contractual obligations that the report addresses.

Additionally, a description of the purpose is necessary to set the framework for understanding why the report was compiled. It ensures that the audience grasps the specific context and relevance of the report, which is especially significant when the report is used to comply with specific regulatory mandates or contractual terms. This clarity enhances transparency and helps stakeholders make informed decisions based on the report's findings.

In contrast, focusing solely on conclusions, gathering signatures from all involved parties, or providing a detailed budget analysis would not serve the same purpose. They do not address the need for contextual understanding or the specific requirements associated with regulatory or contractual frameworks. Thus, the