A solicitor limits a response concerning a litigation claim because the solicitor is unable to determine the likelihood of an unfavourable outcome. Which type of opinion should the auditor express if the litigation is adequately disclosed
And the range of potential loss is material in relation to the client's financial report considered as a whole?
A) Qualified.
B) Unmodified with an Other Matter paragraph.
C) Unmodified with an Emphasis of Matter paragraph.
D) Unmodified.

Question

Quizplus · Accepted Answer

An Emphasis of Matter paragraph is used to highlight a matter that is appropriately presented or disclosed in the financial statements but is of such importance that it is fundamental to users' understanding of the financial statements. In this case, the litigation is adequately disclosed, and the range of potential loss is material, so an Emphasis of Matter paragraph is appropriate.

A Solicitor Limits a Response Concerning a Litigation Claim Because