Why does the "Emphasis of Matter" (EOM) is included in the Audit report ? Give two examples which could be considered as EOM.

Emphasis of Matter Emphasis of matter (EOM) is included in the audit report to seek the attention of the reader, to make the reader aware about the specific instances which are not in the general course of business. Such matters can have positive as well as negative impact on the affairs of the company in future. The purpose of an EOM paragraph is to draw the users' attention to a matter already disclosed but the auditor believes that, it is fundamental to their understanding and should be a part of the report. The following are examples of the matters which should be considered as emphasis of matter: Legal uncertainty: an uncertainty relating to the future outcome of exceptional litigation or regulatory action. Litigation certainty: when there is uncertainty about exceptional future events, pending litigations. New Technology: adoption of new technology Changes in regulatory environment: recent changes in the regulatory environment Major Catastrophe: when a major catastrophe has had a major effect on the financial position Early Application of new AS: early application (where permitted) of a new accounting standard (for example, a new International Financial Reporting Standard) that has a pervasive effect on the financial statements in advance of its effective date.