When the auditors of a nonpublic company are unable to comply with generally accepted auditing standards,they should issue an opinion that is unmodified,but include an additional emphasis-of-matter paragraph in the report.

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If the auditors are unable to comply with generally accepted auditing standards, they should not issue an unmodified opinion. Instead, they should issue a modified opinion, such as a qualified or adverse opinion, and include an explanatory paragraph in the report explaining the reasons for the modification.

When the Auditors of a Nonpublic Company Are Unable to Comply