Question

If the auditor's opinion on the revised financial statements is different from the previously issued audit report, then a/an _______ should be added to the revised audit report.

A) Emphasis-of-matter paragraph
B) Going concern paragraph
C) Auditor's responsibility paragraph
D) Opinion paragraph.

Answer 1

When the auditor's opinion on revised financial statements differs from the original audit report, an emphasis-of-matter paragraph is included to highlight significant matters in the financial statements, without affecting the auditor's opinion.

Step-by-step explanation:

If the auditor's opinion on the revised financial statements is different from the previously issued audit report, then a emphasis-of-matter paragraph should be added to the revised audit report. This paragraph is used to draw attention to a matter appropriately presented or disclosed in the financial statements that, in the auditor's professional judgment, is of such importance that it is fundamental to users' understanding of the financial statements. The emphasis-of-matter paragraph does not affect the auditor's opinion; it merely emphasizes specific aspects of the financial statements.