The Following Can Be Said About an Emphasis of Matter

question 1

Multiple Choice

The following can be said about an emphasis of matter:

• A) it is included when the auditor's opinion has changed and the auditor wants to bring the users' attention to a particular matter.
• B) it is only used in unqualified audit opinions.
• C) it is included when the auditor's opinion has not changed and the auditor wants to bring the users' attention to a particular matter.
• D) it can not be used when expressing audit opinion that has pervasive misstatements.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the accounting period they relate to.

Insurance Expense

The cost incurred by a company to insure its assets and operations.

Adjusting Entry

Recording entries in journals at an accounting period's end to distribute income and expenses to the actual period of occurrence.

Prepaid Insurance

Refers to payments made in advance for insurance coverage, recognized as an asset on the balance sheet until the coverage period lapses.