An emphasis-of-matter paragraph refers to when an auditor_______.
A)issues an unmodified opinion but may include an additional paragraph in the report to draw attention to important information
B)issues a disclaimer of opinion due to a scope limitation
C)makes inquiries of the prior auditor relating to prior audit opinions issues
D)makes inquiries of the legal auditor relating to prior audit opinions issues

Question

Quizplus · Accepted Answer

An emphasis-of-matter paragraph is included in an audit report when the auditor wants to draw attention to important information without modifying the overall opinion. This information may relate to a significant uncertainty, going concern issues, or events that occurred after the balance sheet date. The auditor includes this paragraph to ensure users of the financial statements are aware of the significance of the matter. Therefore, option A is correct. The other options are not related to the concept of an emphasis-of-matter paragraph.

An Emphasis-Of-Matter Paragraph Refers to When an Auditor_______