Under certain circumstances, the auditor is required to provide additional information regarding the financial report even though he or she intends to express an unmodified opinion.Normally, such explanatory information should be included in:
A) the opinion paragraph.
B) the scope paragraph.
C) the introductory paragraph.
D) an emphasis of matter paragraph.

Question

Quizplus · Accepted Answer

Explanatory information that needs to be disclosed in the audit report but does not affect the auditor's opinion should be presented in an emphasis of matter paragraph. This allows the auditor to draw attention to the particular matter without compromising the unmodified opinion. Hence, the best choice is D - an emphasis of matter paragraph.

Under Certain Circumstances, the Auditor Is Required to Provide Additional