Where the preparers of the financial report believe that the application of an accounting standard may mislead the users of those statements, and the auditor concurs with this view:
A) a standard unmodified opinion can be issued.
B) an emphasis of matter paragraph will be added to the audit report.
C) a scope limitation will arise.
D) the accounting standard need not be followed.

Question

Quizplus · Accepted Answer

An emphasis of matter paragraph will be added to the audit report to draw the users' attention to the matter where the application of an accounting standard may mislead them. The audit report will be modified, but the opinion will still be unmodified. The other options are not applicable in this situation.

Where the Preparers of the Financial Report Believe That the Application