Where there is material uncertainty about the going concern of an entity and, in the auditor's opinion, the directors include sufficient appropriate disclosures in the financial statements relating to the matter, which of the following is the best course of action (assuming there are no other matters of concern)?
A) Resign as auditor and not give an opinion.
B) Issue a modified "except for" opinion.
C) Issue an unmodified audit opinion.
D) Issue an unmodified audit opinion but include a section addressing the "material uncertainty related to going concern".

Question

Quizplus · Accepted Answer

When there is material uncertainty about going concern but adequate disclosures are made, the auditor issues an unmodified opinion with an emphasis of matter paragraph.

Where There Is Material Uncertainty About the Going Concern of an Entity