Emphasis of matter
Encyclopedia
Emphasis of matter is a type of paragraph in, or section of, an audit
ors' report on financial statement
s. Such a paragraph is added to indicate a significant uncertainty or other matter, which is disclosed appropriately in the notes forming part of the financial statements, but which the auditor considers is significant or important enough to warrant a mention in their report.
An emphasis of matter paragraph does not qualify the auditors' opinion; in fact, such paragraphs typically begin by stating Without qualifying our report....
Under the framework of the International Standards on Auditing
(ISA), the emphasis of matter paragraph / section is placed after the opinion paragraph (and, consequently, towards the end of the report), in the auditor's report.
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...
ors' report on financial statement
Financial statement
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...
s. Such a paragraph is added to indicate a significant uncertainty or other matter, which is disclosed appropriately in the notes forming part of the financial statements, but which the auditor considers is significant or important enough to warrant a mention in their report.
An emphasis of matter paragraph does not qualify the auditors' opinion; in fact, such paragraphs typically begin by stating Without qualifying our report....
Under the framework of the International Standards on Auditing
International Standards on Auditing
International Standards on Auditing are professional standards for the performance of financial audit of financial information. These standards are issued by International Federation of Accountants through the International Auditing and Assurance Standards Board .-Respective responsibilities:*ISA...
(ISA), the emphasis of matter paragraph / section is placed after the opinion paragraph (and, consequently, towards the end of the report), in the auditor's report.