An emphasis of a matter may result in which of the following?
A)A disclaimer of an audit opinion.
B)A qualified audit opinion.
C)An adverse opinion.
D)An unqualified audit opinion with an explanatory paragraph.

Question

Quizplus · Accepted Answer

An emphasis of a matter is when the auditors add a paragraph to their audit report to draw attention to a particular matter that is considered highly important to the financial statements. This paragraph is added to an unqualified audit opinion, indicating that there are no material misstatements in the financial statements, but there is an emphasis on a particular matter. Therefore, the correct answer is D) an unqualified audit opinion with an explanatory paragraph. A disclaimer of an audit opinion, qualified audit opinion, and adverse opinion are issued when there are material misstatements in the financial statements or significant limitations affecting the scope of the audit.

An Emphasis of a Matter May Result in Which of the Following