[benboccio]

If properly disclosed in the financial statements, which of the following would ordinarily cause an accountant to modify his or her standard compilation or review report?

I. Uncertainty about the entity’s ability to continue as a going concern
II. Inconsistency in the application of accounting principles

A.
I only
B.
II only
C.
Both I and II
D.
Neither I nor II

If adequately disclosed in the financial statements, an uncertainty about an entity’s ability to continue as a going concern or other accounting matters (other than those involving a change in accounting principles) may be, at the accountant’s discretion, emphasized in the accountant’s report (but will not require a modification to the standard compilation or review report).

If there is an issue that is adequately disclosed such as going concern or a material change in accounting principles, would the report be considered MODIFIED due to it having an emphasis of matter paragraph?

Would there normally be an emphasis of matter paragraph for a going concern issue?