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T/F: The unmodified opinion audit report with emphasis-of-matter paragraph does not meet the criteria of a complete audit with satisfactory results

User Marc T
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1 Answer

5 votes

Final answer:

False. An unmodified opinion with an emphasis-of-matter paragraph does meet the criteria of a complete and satisfactory audit by highlighting important information without affecting the opinion.

Step-by-step explanation:

An unmodified opinion audit report with an emphasis-of-matter paragraph indeed meets the criteria of a complete audit with satisfactory results. The emphasis-of-matter paragraph does not affect the auditor's unmodified opinion on the financial statements; it is simply used to highlight an area of importance that is already presented or disclosed in the financial statements. This means that the auditor still concludes that the financial statements present a true and fair view in accordance with the applicable financial reporting framework. Adding an emphasis-of-matter paragraph is appropriate when the auditor believes it is necessary to draw users' attention to a matter presented or disclosed in the financial statements that is of such importance that it is fundamental to users' understanding of the financial statements.

User Kasun Gajasinghe
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