When is an auditor most likely to include an emphasis of matter paragraph?

An auditor is most likely to include an emphasis of matter paragraph when there is a matter that is fundamental to understanding the financial statements. This type of paragraph is used to draw attention to important information that is already properly disclosed in the financial statements, but which could be critical for users to understand the financial position and performance of the entity.

The inclusion of an emphasis of matter paragraph serves to highlight issues like significant uncertainties, going concern considerations, or major transactions and events that may impact the company's financial metrics. This is done without modifying the audit opinion, as the financial statements may still be fairly presented, but the information is so vital that it warrants emphasis for the reader’s understanding.

In contrast, changes to the audit opinion would typically occur in different scenarios, such as material misstatements or non-compliance with accounting standards, rather than simply emphasizing a matter. Incorrect information in the financial statements would lead to concerns that might lead to a qualified opinion rather than an emphasis of matter. If all matters are clearly disclosed and do not significantly impact the user's understanding, there would be no need for an emphasis of matter paragraph at all. Thus, the emphasis of matter is specifically geared towards enhancing the clarity of fundamental matters in context to the financial statements.