Question

Occasionally, an auditor chooses to include an additional paragraph in the audit report to draw attention to important information. This additional paragraph is called a(an) _______ paragraph.

1) introductory
2) emphasis-of-matter
3) opinion
4) auditor's responsibility

Answer 1

An auditor may include an 'emphasis-of-matter' paragraph in the audit report to draw attention to important information that's relevant to the financial statements.

Step-by-step explanation:

Occasionally, an auditor adds an additional paragraph in the audit report to highlight pertinent information which is not appropriately presented or disclosed within the financial statements. This additional paragraph is known as an emphasis-of-matter paragraph. It's added to draw attention to matters such as significant subsequent events, uncertainties, or going concern issues, which are fundamental to users' understanding of the financial report.