Multiple Choice
The auditors include an emphasis-of-matter paragraph in an otherwise unmodified report on the entity's financial statements to emphasize that the entity being reported on had significant transactions with related parties.The inclusion of this separate paragraph
A) is considered a qualification of the opinion.
B) violates generally accepted auditing standards if this information is already disclosed in footnotes to the financial statements.
C) necessitates a revision of the opinion paragraph to include the phrase "with the foregoing explanation."
D) is appropriate and would not otherwise affect the unmodified opinion.
Correct Answer:
Verified
Correct Answer:
Verified
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