What is emphasis of matter paragraph?
// Emphasis of matter paragraph, as the name suggests, is a paragraph that is included by the auditor in his report (audit report) to direct the attention of users of financial statements to a matter that has been discussed appropriately in the financial statements (usually a disclosure). The reason why auditor invites the attention of users is that in auditor’s judgment the matter is of such importance that users should know about this in order to completely understand the financial statements. Emphasis of Matter paragraph (EMP) has been defined in International Standards on Auditing (ISAs) as follows: A paragraph included in the auditor’s report that refers to a matter appropriately presented or disclosed in the financial statements that, in the auditor’s judgment, is of such importance that it is fundamental to users’ understanding of the financial statements. From the above definition we can understand that: • EMP is basically a reference to a matter or a disclosure in the financia
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