Question

A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is?

1) included in the scope paragraph.
2) included in the opinion paragraph.
3) included in a separate paragraph in the report.
4) included in the introductory paragraph.

Answer 1

Explanatory information that a CPA wants to emphasize in an unqualified audit report is typically included in a separate paragraph in the report.

Step-by-step explanation:

When a Certified Public Accountant (CPA) wishes to emphasize specific matters regarding the financial statements but intends to issue an unqualified opinion, such explanatory information is normally included in a separate paragraph in the audit report. This separate paragraph is added to highlight matters that are important to the understanding of the audit, the accounting policies, or the financial statements, without modifying the unqualified opinion. It is crucial for the clarity and completeness of the document to include this information in the appropriate section to ensure readers are fully informed and understand the context of the financial statements.