Question

Which of the following situations would not result in auditors adding an emphasis-of-matter paragraph or section to their report without modifying the remainder of the report? Multiple Choice Reference to a departure from GAAP that is material, but not pervasive, to the financial statements. Reference to a going-concern uncertainty facing the entity. Reference to a change in the method of accounting mandated by the issuance of a new accounting standard. Reference to an acquisition made by the entity during the most recent fiscal year.

Answer 1

Answer: Reference to a departure from GAAP that is material, but not pervasive, to the financial statements.

Explanation:

Based on the information given, the situation which would not result in the auditors adding an additional paragraph to their report without the modification of the introductory, the scope, or the opinion paragraphs of the report is option A "Reference to a departure from GAAP that is material, but not pervasive, to the financial statements".

Other options are incorrect. Therefore, the correct option is A