An unmodified opinion audit report with an emphasis-of-matter paragraph is issued when the auditor believes the financials are fairly stated but also believes additional information should be provided.

Question

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An emphasis-of-matter paragraph in an audit report is used to draw attention to a matter that is included in the financial statements but is of such importance that it is fundamental to the users' understanding of the financial statements. This paragraph is not used to indicate that the financial statements are not fairly stated but rather to highlight a matter of significance that users should consider when reviewing the financial statements. Therefore, if an emphasis-of-matter paragraph is included in an unmodified opinion audit report, it indicates that the auditor believes the financial statements are fairly stated but that additional information should be provided to help users better understand the financial statements.

An Unmodified Opinion Audit Report with an Emphasis-Of-Matter Paragraph Is