The Auditors Include an Emphasis-Of-Matter Paragraph in a Nonpublic Company

question 48

Multiple Choice

The auditors include an emphasis-of-matter paragraph in a nonpublic company audit report with an unmodified opinion in order to emphasize that the entity being reported upon is a subsidiary of another business enterprise.The inclusion of this paragraph:

• A)Is appropriate and would not negate the unmodified opinion.
• B)Is considered a qualification of the opinion.
• C)Is a violation of generally accepted reporting standards if this information is disclosed in notes to the financial statements.
• D)Necessitates a revision of the opinion paragraph to include the phrase "with the foregoing explanation."

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Documents

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Private Companies

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