AUD Reporting · Updated November 2026

Emphasis-of-Matter or Other-Matter: What Is the Paragraph Pointing To?

The distinction depends on whether the matter is presented or disclosed in the financial statements themselves.

Emphasis-of-matter

Draws attention to a matter appropriately presented or disclosed in the financial statements that is fundamental to users' understanding.

Other-matter

Addresses a matter other than something presented or disclosed in the statements that is relevant to users' understanding of the audit, auditor responsibilities, or report.

Opinion effect

Neither paragraph automatically means the opinion is qualified.

The takeaway

Inside the financial statements points toward emphasis-of-matter. Outside them can point toward other-matter.

Related Summit guides

Modified opinionsContinue with a related Summit CPA Review guide.Going concernContinue with a related Summit CPA Review guide.Subsequent eventsContinue with a related Summit CPA Review guide.

FAQ

Does EOM automatically mean qualified opinion?

No.

Can OM describe matters about the audit?

Yes.

Are these paragraphs interchangeable?

No.