Which of the following is least likely to result in an emphasis-of-matter paragraph being added to an unmodified auditor's report on the financial statements of a nonpublic client that sells jewelry through a retail store? A)A decision by the auditor to emphasize that the client is a part of a larger organization. B)Use of an unacceptable method to value inventory with results that differ materially from GAAP. C)A change from FIFO to specific identification accounting for inventory. D)A question as to whether the client will be able to remain a going concern.

Question

Quizplus · Accepted Answer

An emphasis-of-matter paragraph is not typically added for the use of an unacceptable method to value inventory, as this would likely result in a qualified or adverse opinion rather than an unmodified opinion with an emphasis-of-matter paragraph.

Which of the Following Is Least Likely to Result in an Emphasis-Of-Matter