When auditors wish to issue an un-modified opinion but highlight that the entity changed its method of accounting for software development costs, they would most appropriately identify the change in accounting method in which of the following? A. The introductory paragraph. B. The opinion paragraph. C. An emphasis - of - matter paragraph. D. An other - matter paragraph.

Question

Business

Reagan Cowan

25 March, 19:51

When auditors wish to issue an un-modified opinion but highlight that the entity changed its method of accounting for software development costs, they would most appropriately identify the change in accounting method in which of the following? A. The introductory paragraph. B. The opinion paragraph. C. An emphasis - of - matter paragraph. D. An other - matter paragraph.

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Answers (1)

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Ernest · Answer 1

C) An emphasis of matter paragraph.

Explanation:

An emphasis of matter paragraph relates to matters already included in the financial statements of a company. The information included in this paragraph should be important in order to understand some specific issue about the financial statements.

In this particular case, the information about the method of accounting is always important and relevant, and the users should know about it.