alleryStart learning →What does an emphasis of matter paragraph in an audit report signal?
AThe company will be liquidated within a year
BThe audit opinion has been withdrawn
CThe auditor has disclaimed the opinion
DNot necessarily that insolvency is near
Answer & Solution
Correct answer: D. Not necessarily that insolvency is near
Such a paragraph draws attention to a matter but does not by itself mean the company is about to become insolvent.
Keep practising Completion and Review
Browse all Completion and Review questions for CA Inter, or explore more Auditing topics.
Related questions
Control risk is higher where what is poorly defined?The amended 2020 IASB materiality definition added which word to omitting and misstating?Planning materiality must be set when, according to ISA 320?Why might a small misstatement still be material?When is materiality reassessed in practice before the report is issued?How is audit risk related to the materiality level set?Audit work after a hard close, covering the remaining months, is called what?Effective internal controls do what to the substantive work needed?