In which of the following should an auditors' report refer to the lack of consistency when there is a change in accounting principle that is significant?
A)The Auditor's Responsibilities for the Audit of the Financial Statements Section.
B)The Opinion Section.
C)An emphasis-of-matter paragraph following the Basis for Opinion Section.
D)An emphasis-of-matter paragraph preceding the Basis for Opinion Section.

Question

Quizplus · Accepted Answer

An emphasis-of-matter paragraph should be included after the Basis for Opinion section and before the Opinion section to draw attention to significant matters affecting the financial statements, such as a change in accounting principle that results in a lack of consistency from prior periods. This helps ensure that the reader of the financial statements is aware of the change and its impact on the financial statements.

In Which of the Following Should an Auditors' Report Refer