When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, the appropriate audit report could be I. an unmodified opinion audit report with an explanatory paragraph.
II) a disclaimer of opinion.
A) I only
B) II only
C) I or II
D) Neither I nor II

Question

Quizplus · Accepted Answer

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, the appropriate audit report could either be an unmodified opinion audit report with an explanatory paragraph or a disclaimer of opinion. The choice depends on the severity of the doubt and its impact on the financial statements. Therefore, both options are valid in this scenario.

When the Auditor Concludes That There Is Substantial Doubt About