Emphasis of matter
Also called: emphasis of matter paragraph
A paragraph in an auditor's report drawing attention to something disclosed in the statements that the auditor considers fundamental to understanding them.
An emphasis of matter paragraph does not change a clean opinion, and it cannot replace a qualified opinion when one is needed. It points readers to an important disclosure, such as a major lawsuit or uncertainty.
Example
An auditor might emphasise a note describing a large tax dispute whose outcome is uncertain.
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- The auditor's reportWhat does an auditor's report tell investors?
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