Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2026 - Free CPA Practice Questions and Study Guide

A lack of consistency due to a significant change in accounting principle should be referred to in an emphasis-of-matter paragraph that follows the opinion paragraph. This placement is appropriate because the emphasis-of-matter paragraph serves to highlight important information that is relevant to users of the financial statements but does not alter the auditor's opinion. It allows the auditor to draw attention to the change and its impact on the financial statements without undermining the overall opinion provided.

When an accounting principle is changed, it can affect the comparability of the financial statements across periods. Therefore, it is essential for the auditor to indicate this change and explain its significance to the users of the financial statements. By placing the emphasis-of-matter paragraph after the opinion, the auditor maintains the integrity of the opinion while ensuring that users are informed of this critical change in accounting practices.