When a client has a going concern issue, .AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern requires an _______.
A)emphasis-of-matter paragraph be added to the unmodified report, before the opinion paragraph
B)an emphasis-of-matter paragraph be added to the unmodified report, after the opinion paragraph
C)an explanatory paragraph be added to the unmodified report, after the opinion paragraph
D)an explanatory paragraph be added to the unmodified report, before the opinion paragraph

Question

Quizplus · Accepted Answer

According to AU-C 570, when a client has a going concern issue, an emphasis-of-matter paragraph should be added to the unmodified report after the opinion paragraph. This informs the user of the financial statements that there is significant uncertainty about the entity's ability to continue as a going concern.

When a Client Has a Going Concern Issue