Independent auditors must consider whether the entity has the ability to continue as a going concern.If a substantial doubt exists but disclosure is adequate and no other basis exists for modifying the report,the auditors would normally
A) Disclaim an opinion.
B) Express an adverse opinion.
C) Qualify the opinion.
D) Express an unqualified opinion with an additional paragraph describing the going-concern uncertainty.

Question

Quizplus · Accepted Answer

If the auditors believe that there is a substantial doubt about the entity's ability to continue as a going concern, they should express an unqualified opinion with an additional paragraph describing the uncertainty. This is known as an emphasis of matter paragraph, and it would disclose the auditors' concerns about the entity's ability to continue as a going concern. If the auditors believe that disclosure is adequate and no other basis exists for modifying the report, then the best choice would be to express an unqualified opinion with an emphasis of matter paragraph.

Independent Auditors Must Consider Whether the Entity Has the Ability