Emphasis of matter
ESG & GovernanceA paragraph in an audit report that draws attention to an important matter already disclosed in the accounts, without changing the opinion.
Under SA 706, auditors use an emphasis of matter paragraph for issues readers must notice, such as a pending court case, a major uncertainty or a doubt about the company's ability to continue as a going concern. The opinion stays unmodified, but the issue can be very serious. An emphasis of matter on going concern is effectively a credit warning.
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