[Anonymous]

In which of the following should an auditor’s report refer to the lack of consistency when there is a change in accounting principle that is significant?

An emphasis-of-matter paragraph following the opinion paragraph.

An emphasis-of-matter paragraph before the opinion paragraph.

following was correct…i understand that if the auditor concurs, it comes after…where in this question did it show that the auditor concurred??

[gladrial]

So let me understand, are you are looking for a note from the concurring Partner on an engagement that they agree with the audit report?

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[Anonymous]

i'm trying to understand why the paragraph goes after the opinion…when there is a lack of consistency the paragraph only goes afterword if the auditor agrees with the clients lack of consistency, if they disagree it goes before…the correct answer to this wiley question is after…but nowhere in the question does it state that the auditor agreed with managements change in consistency so why is it implied that they've agreed?

[excel monkey]

It's not implied that they agreed. If the auditor agrees with the change, they would use an emphasis of matter paragraph after the opinion paragraph. If the auditor disagrees with the change in accounting principle, they would issue either a modified or adverse opinion. When this happens there would be a “Basis for Opinion” paragraph before the the opinion paragraph, not an emphasis of matter paragraph. The way I understand it, emphasis of matter paragraphs always come after the opinion paragraph. Hopefully someone else can chime in if I'm mistaken.

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[Anonymous]

you're right, but what i'm not understanding is how do you know if they've agreed or not based on reading that question?

[Anonymous]

oh shit, you're right i see….it would be emphasis or basis which those words in the answer choices make it obvious if they've agreed or not. Thanks.

[Author]

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