For a client with serious going concern issues,the auditor has to make a choice between issuing an unqualified audit report with an explanatory paragraph or a disclaimer.

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When a client has serious going concern issues, the auditor may issue an unqualified audit report with an explanatory paragraph, describing the circumstances that led to the going concern issue, and concluding that the financial statements are fairly presented or a disclaimer, stating that the auditor is unable to form an opinion on the financial statements due to the going concern uncertainty. The choice between these two options is based on the auditor's judgment, and depends on the severity of the going concern issue, the adequacy of the management's response, and the sufficiency of the audit evidence obtained.

For a Client with Serious Going Concern Issues,the Auditor Has