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Hi, hope you are doing good,
could you please tell me, if an , Emphasis of matter’ or ‘Other matter paragraph’ is included in an auditor’s report with an ‘unmodified opinion’, the report would still be considered as unmodified audit report, is this correcr?
(with an ‘unmodified opinion’)>> I think you meant to write with an “unqualified opinion” – right?
If an emphasis matter is added to the report then we modified the audit report and it is a modified report! We don’t usually have this extra paragraph that’s why it will be modified, but the opinion is unqualified since the going concern issue is disclosed in the notes so the F.S show true and fair view.
Is this what you were asking about?
Hope that helped.
Maha
yes report would still be considered unmodified.
emphasis of matter or other matter paraghraphs are not modifications.
they can be used with any of the four types of reports.I thought this is ‘ask the tutor forum’. I’ll wait for the tutor to answer me. Thanks anyway.
Yes it is and I am sure he will answer you soon.
Although I am sure of my answer: Emphasis matter = modified report.
Maha
There is frequent confusion between ‘modified report’ and ‘modified opinion’. Only ‘modified opinion’ is mentioned in the ISA; ‘modified report’ is often used, but it is colloquial.
A modified opinion can be qualified, adverse or a disclaimer.
If an emphasis of matter paragraph is included then, the report has been changed/added to/modified. However, an EoM paragraph does not modify the opinion.
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