An unqualified audit report with an emphasis of matter should be issued if a subsequent event has occurred that has resulted in a new auditor's report being prepared on a revised financial report.

Question

Quizplus · Accepted Answer

An unqualified audit report with an emphasis of matter is appropriate when there is a need to draw attention to a matter affecting the financial statements that is already disclosed in the financial statements or the notes to the financial statements. If a subsequent event occurs that requires the preparation of a revised financial report, a new auditor's report will be issued, and if the revised financial report is unqualified, the auditor's report will also be unqualified with an emphasis of matter if necessary. Therefore, Option A is correct.

An Unqualified Audit Report with an Emphasis of Matter Should