Certain circumstances, while not affecting the auditor's opinion on the financial report, may require the auditor to add an Emphasis of Matter paragraph to the report.These circumstances include all of the following except where:
A)there is significant uncertainty about the entity's ability to continue as a going concern.
B)the entity is facing significant litigation.
C)there is early application of a new accounting standard that has a pervasive effect on the financial report before its effective date.
D)there is a matter involving a significant uncertainty that is not adequately disclosed.

Question

Quizplus · Accepted Answer

An Emphasis of Matter paragraph is used to draw attention to a matter that is adequately disclosed in the financial statements. If there is a significant uncertainty that is not adequately disclosed, this would typically result in a modification of the auditor's opinion, not just an Emphasis of Matter paragraph.

Certain Circumstances, While Not Affecting the Auditor's Opinion on the Financial