Emphasis of matter paragraph
An emphasis of matter paragraph draws attention to a matter appropriately presented or disclosed in the financial statements that is fundamental to users’ understanding. It is not a substitute for a modified opinion where modification is required and does not itself change the opinion.
Worked example
A properly disclosed exceptional catastrophe is fundamental to understanding the statements, and the auditor includes an appropriately headed paragraph.
Common mistake
Do not use an emphasis paragraph to cure a material omission in the financial statements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |