Misuse of Emphasis of Matter Paragraphs in Unqualified Audit Opinions

Abstract

Audit opinion helps investors and creditors to understand the real financial situation of the enterprise, so that they can make smarter investment and credit decisions and protect their own interests. However, in auditing practice, the definition of an audit opinion is not very clear, and sometimes there is some ambiguity. Moreover, the auditing standards for the part of the emphasis of matter can be increased only provide some principal guidance, but not detailed list of specific application, which could lead to misunderstanding and misuse of the paragraph. In order to improve audit quality, the professional judgment and ethics of certified public accountants in issuing audit reports should be further emphasized.