The emphasis of matter paragraph (EOMP) refers to a paragraph in the audit report that emphasizes or provides a reference to the specific information already included in the business financial statement.
Please note it’s only an emphasis/reference of the information already included in the financial statement and does not provide additional information. Then, why is an emphasis on the matter paragraph included in the audit report?
Purpose of emphasis of matter paragraph
EOMP aims to emphasize or highlight some specific information/paragraph already given in the financial statement. So, EOMP is only used to refer to the material information given in the financial statement. For instance, the following can be the content of EOMP.
Paragraph X in the financial statement contains information about the recent merger with XYZ company.
Difference between OMP and EOMP
OMP is additional information in the audit report that was not reported in the financial statement. The financial framework may not require this information to be included in the financial statement, so it’s additional and depends on the auditor’s discretion whether to include it in the audit report.
Wrap up
The emphasis of matter paragraph (EOMP) provides a reference number for the relevant and important information already given in the financial statement. The auditors consider specific information important and want to emphasize it for the users of financial statements.
It’s different from OMP, which is additional information in the audit report, and EOMP, which is just an emphasis/reference of the information already given in the financial statement.
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