[Biff-1955-Tannen]

My audit professor says that if there is a going concern issue, the report will automatically be a qualified or adverse opinion. I disagree and say that it could still have an unmodified opinion with an emphasis of matter paragraph.

AU-C 570 paragraph 15 discuses the need for an emphasis of matter paragraph, but doesn’t specifically say it could be unmodified. I’ve been studying for BEC for a few weeks now, so I can’t remember for sure but I thought that emphasis of matter paragraphs are only in unmodified reports… does anybody know if this is the case?

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[acamp]

Your professor is incorrect. You get an A in the class. Opinion will generally only be modified if the Company has not properly disclosed the going concern and/or has not properly adjusted their financials statements as necessary (e.g. debt covenants are broken all debt should be displayed as current, etc).

I am looking at a financial statement signed off by my firm (Big4) which includes a clean audit report, and an emphasis of a matter paragraph (going concern)–that paragraph ends with “Our opinion is not modified with respect to this matter”

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[Biff-1955-Tannen]

hahaha an A yesssss!
What about what type of opinions can have emphasis of matter paragraphs? I can't remember this for sure and its just bugging me now.

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Tripin93]

It's been a few months since I studied audit, but I think I remember reading that the presence of any paragraph (other matter or emphasis of the matter) makes the report modified. Not necessarily qualified or adverse or disclaimer. But I thought the presence of a paragraph caused the report to be deemed modified. From my understanding, the unmodified is just the clear cut, standard wording, with no paragraphs. I could be wrong. But I would bet money that I'm right, because I remember this being a key factor to understanding some of my practice mc.

Motivated by JC. I do it to make God proud.

FAR: 91 July 2015
AUD: 83 October 2015
REG: 81 January 2016
BEC: 83 February 2016

[Biff-1955-Tannen]

Tripin93 you are indeed right about that, I remember this issue coming up in MC also. I'm just not sure about if emphasis of matter paragraphs are limited to Unmodified opinions (not necessarily unmodified reports).

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Tncincy]

You really took on the professor? Well I guess he/she should know the materials they teach.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Biff-1955-Tannen]

Not sure what you're getting at

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Tncincy]

Nothing, just asking if you disagreed with the professor during class…..no offense intended.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Author]

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