Whenever an auditor adds an emphasis of matter section to an unmodified audit report, the implication is that the auditor:
A) does not know if the report is presented fairly.
B) is satisfied that the report is presented fairly 'except for' a specific aspect of it.
C) does not believe the report is presented fairly.
D) is satisfied that the report is presented fairly.

Question

Quizplus · Accepted Answer

When an auditor adds an emphasis of matter section to an unmodified audit report, it indicates that while the auditor is satisfied that the financial statements are presented fairly in all material respects (in accordance with the applicable financial reporting framework), there is a matter that is appropriately presented or disclosed in the financial statements that the auditor believes is of such importance that it is fundamental to users’ understanding of the financial statements. This does not imply any dissatisfaction or doubt about the fairness of the financial statements.

Whenever an Auditor Adds an Emphasis of Matter Section to an Unmodified