The Auditors Include an Emphasis-Of-Matter Paragraph in Report with an Unmodified

The auditors include an emphasis-of-matter paragraph in report with an unmodified opinion in order to emphasize that the entity being reported upon is a subsidiary of another business enterprise.The inclusion of this paragraph:

A) Is appropriate and would not negate the unmodified opinion.
B) Is considered a qualification of the opinion.
C) Is a violation of generally accepted reporting standards if this information is disclosed in notes to the financial statements.
D) Necessitates a revision of the opinion paragraph to include the phrase "with the foregoing explanation."

Correct Answer:

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