If an auditor wishes to draw attention to important information that is already presented or disclosed in the financial statements, the auditor would include a _______.
A)qualified opinion
B)disclaimer of opinion
C)emphasis-of-matter paragraph
D)scope limitation paragraph

Question

Quizplus · Accepted Answer

An emphasis-of-matter paragraph is used by the auditor to draw attention to important information that is already presented or disclosed in the financial statements. This paragraph does not affect the auditor's opinion on the financial statements. Therefore, the best choice is C - emphasis-of-matter paragraph. A qualified opinion is given when there is a limitation or scope limitation to the audit, or when there is a departure from generally accepted accounting principles (GAAP) in the financial statements. A disclaimer of opinion is given when the auditor is unable to express an opinion on the financial statements. A scope limitation paragraph is used when the auditor was not able to obtain sufficient evidence to support the financial statements.

If an Auditor Wishes to Draw Attention to Important Information