In which of the following should an auditors' report refer to the lack of consistency when there is a change in accounting principle that is significant?
A)The Auditor's Responsibility section.
B)The opinion paragraph.
C)An emphasis-of-matter paragraph following the opinion paragraph.
D)An emphasis-of-matter paragraph before the opinion paragraph.

Question

Quizplus · Accepted Answer

An emphasis-of-matter paragraph following the opinion paragraph is the correct place for the auditors' report to refer to the lack of consistency when there is a significant change in accounting principle. This helps to draw the reader's attention to the issue while not affecting the overall opinion given by the auditors.

In Which of the Following Should an Auditors' Report Refer