MC Question 9

An emphasis of matter paragraph is used in an audit report to draw attention to a matter affecting the financial statements.

Which TWO of the following are correct in relation to an Emphasis of Matter Paragraph in the Auditor’s Report?

1 It is used when there is a significant uncertainty
2 It constitutes a qualified audit opinion
3 The audit report is referred to as an unmodified report
4 The matter is deemed to be fundamental to the users understanding of the financial statements

A. 1 and 2
B. 1 and 4
C. 1 and 3
D. 2 and 4

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