Define the emphasis of matter paragraph.
A)A paragraph included in the auditor's report that is required by generally accepted auditing standards or is included at the auditor's discretion.
B)A paragraph that identifies the statements being audited and states the auditor's opinion.
C)A paragraph that states responsibilities and references registration with the Public Company Accounting Oversight Board (PCAOB).
D)A paragraph that briefly explains the process of conducting an audit and that the PCAOB standards were followed.

Question

Quizplus · Accepted Answer

The emphasis of matter paragraph is a paragraph included in the auditor's report that is required by generally accepted auditing standards or is included at the auditor's discretion, and highlights a matter that is relevant to the audit or that could affect the financial statements. It does not identify the statements being audited, state the auditor's opinion, or explain the process of conducting an audit.

Define the Emphasis of Matter Paragraph