When a company's financial statements contain a departure from IFRS with which the auditor concurs, the departure should be explained in:
A) the opinion paragraph.
B) the management's responsibility paragraph.
C) an emphasis of a matter paragraph that appears before the opinion paragraph.
D) an emphasis of a matter paragraph after the opinion paragraph.

Question

Quizplus · Accepted Answer

An emphasis of a matter paragraph is used to draw attention to a matter that is appropriately presented or disclosed in the financial statements but is of such importance that it is fundamental to users’ understanding of the financial statements. When there is a departure from IFRS that the auditor agrees with, it should be explained in an emphasis of a matter paragraph to ensure that the users of the financial statements are adequately informed about the departure and its implications. This paragraph appears before the opinion paragraph to highlight its significance before presenting the auditor's opinion.

When a Company's Financial Statements Contain a Departure from IFRS