The term "explanatory paragraph" was replaced in the AICPA auditing standards with
A) going concern paragraph.
B) emphasis-of-matter paragraph.
C) departure from principles paragraph.
D) consistency paragraph.

Question

Quizplus · Accepted Answer

The term "explanatory paragraph" was replaced in the AICPA auditing standards with "emphasis-of-matter paragraph" to highlight important matters related to the financial statements, such as uncertainties or significant events that may have a material impact on the entity's financial position. The other answer choices (A, C, and D) do not accurately reflect the replacement terminology.

The Term "Explanatory Paragraph" Was Replaced in the AICPA Auditing