If financial statements fail to disclose a material fact, the auditors may disclose the information in an emphasis-of-matter paragraph and, depending upon materiality, issue either a qualified opinion or adverse opinion on the statements.

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If material facts are not disclosed in the financial statements, the auditors can issue an emphasis-of-matter paragraph to disclose the information. Depending on the materiality, the auditors may issue a qualified or adverse opinion on the financial statements.

If Financial Statements Fail to Disclose a Material Fact, the Auditors