An emphasis of matter paragraph must be used when:
A) the financial framework used is acceptable
B) there is no material uncertainty in relation to the going concern
C) the auditor concurs that additional disclosures need to be made to prevent the financial statements or notes being misleading
D) there are no material contingent liabilities

Question

Quizplus · Accepted Answer

An emphasis of matter paragraph is used by auditors to draw attention to a matter appropriately presented or disclosed in the financial statements that is of such importance that it is fundamental to users' understanding of the financial statements. This includes situations where additional disclosures are necessary to prevent the financial statements or notes from being misleading, which the auditor concurs with.

An Emphasis of Matter Paragraph Must Be Used When