Circumstances Where an "Emphasis of a Matter" Paragraph May Be

question 36

Multiple Choice

Circumstances where an "emphasis of a matter" paragraph may be necessary include

• A)an uncertainty relating to the prior outcome of exceptional litigation or regulatory action
• B)early application (where permitted)of a new accounting standard that has a pervasive effect on the financial statements in advance of its effective date
• C)a major catastrophe that has had,or continues to have,a minor effect on the entity's financial position
• D)significant transactions with related parties
• E)unusually frequent subsequent events
• F)both A and B
• G)both B and D
• H)both C and E

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Definitions:

Delegation

Delegation is the process of distributing and entrusting work to other persons.

Accountability

The requirement to show performance results to a supervisor.

Differentiation

The process of making a product or service stand out as unique or different from others in the market, often by focusing on unique qualities or features.

Structural Elaboration

The process of adding complexity and detail to an organization's structure to support its goals and activities.