Which of the following situations would not result in auditors adding an emphasis-of-matter paragraph or section to their report without modifying the remainder of the report?
A)Reference to a change in the method of accounting mandated by the issuance of a new accounting standard.
B)Reference to a going-concern uncertainty facing the entity.
C)Reference to a departure from GAAP that is material, but not pervasive, to the financial statements.
D)Reference to an acquisition made by the entity during the most recent fiscal year.

Question

Quizplus · Accepted Answer

A departure from GAAP that is material, but not pervasive, would typically result in a qualified opinion, which modifies the report, rather than just adding an emphasis-of-matter paragraph.

Which of the Following Situations Would Not Result in Auditors