Issue unmodified opinion but add paragraph to report to discuss the matter.
Emphasis-of-matter paragraphs provide information related to users’ understanding of F/S.
Other-matter paragraphs provide information related to users’ understanding of audit, auditors’ responsibility, or auditors’ report.
Consistency.
Going-concern.
Other Information.
Required Supplementary Information.
Emphasis of a matter.
Relates to:
Change in accounting principles.
Adjustments to correct misstatements in previously issued F/S.
Type of changes in accounting principles:
Accounting principles (GAAP to GAAP).
Form of reporting entity.
Accounting principles (non- GAAP to GAAP).
Accounting principle inseparable from changes in estimates.
Add emphasis-of-matter paragraph following the Basis for Opinion section.
May issue a qualified opinion (GAAP departure) if:
Change is not justified.
Change is not accounted for in accordance with GAAP.
Auditors are responsible to evaluate whether substantial doubt exists about ability of entity to continue in existence for one year beyond date of F/S.
Options
Add separate section with heading Substantial About the Entity’s Ability to Continue as a Going Concern.
If serious uncertainty, may issue disclaimer of opinion.
Auditors required to ensure information consistent with F/S.
Add section describing auditor and management responsibility and described any inconsistencies with F/S.
Auditors required to perform limited procedures and expand report on F/S to address.
Add other-matter paragraph to identify information, describe procedures performed, and identify any issues.
If engaged to report, add other-matter paragraph or prepare separate report.
Indicate if information is fairly stated in relation to financial statements.
Call user attention to important matters.
Add emphasis-of-matter paragraph after Basis for Opinion section.