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Friends am a bit confused about what is Mandatory and what is Optional in regards to Emphasis a matter paragraph requirement in the audit report.
As I understand, in most of a cases an emphasis of a matter in the Unqualified audit report is optional. However, there are certain cases in which an explanatory paragraph to emphasis a matter becomes mandatory. An example for this is a Substantial doubt as to the ability to continue as a going concern. Is my understanding correct? Are there any other situations in which the emphasis of a matter in an unqualified audit report considered mandatory?
As far as Compilation and Review services are concerned (SSARS), in which situations the additional paragraph is considered mandatory? For example, as I understand, a departure from GAAP,Inadequate disclosure and the use of Other Comprehensive Basis of Accounting (OCBOA) are situations in which an additional paragraph is mandatory.
Nevertheless, Unlike the audit report, the additional paragraph emphasizing the Substantial doubt as to the ability to continue as a going concern is optional!
Is my understanding correct?? I need someone to comment on what I have just mentioned in the foregoing paragraphs. Your feedback will be truly appreciated.
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