When an emphasis of matter paragraph is added to an otherwise standard audit report, which statement is ordinarily true?

• A. The modification by adding an emphasis of matter paragraph is an 'except for' qualification of opinion.
• B. The emphasis of matter paragraph is a 'subject to qualification of opinion'.
• C. The emphasis of matter paragraph would ordinarily refer to the fact that the auditor's opinion is not qualified.
• D. The emphasis of matter paragraph is presented before the opinion paragraph.

Answer: (C)

Emphasis of matter paragraphs are used to draw attention to something important that is already disclosed in the financial statements, but they do not change the auditor’s conclusion. The key point is that the opinion remains unmodified even though readers are being told to focus on a particular matter. Because the paragraph signals importance while reaffirming the existing opinion, it would ordinarily refer to the fact that the auditor’s opinion is not qualified—i.e., the matter is highlighted but the overall assessment stands as it was issued.

In practice, this kind of paragraph sits after the opinion and makes clear that, despite the emphasis, the auditor’s verdict remains unchanged. It’s not about an “except for” or “subject to” qualification, and it’s not presented before the opinion.