Which of the following statements is true?
I. The auditor is required to issue a disclaimer of opinion in the event of a material uncertainty.
II. The auditor is required to issue a disclaimer of opinion in the event of a going concern problem.
A) I only
B) II only
C) I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

A material uncertainty related to going concern does not automatically lead to a disclaimer of opinion. The auditor may express an unmodified opinion with an emphasis of matter paragraph regarding the going concern uncertainty. Similarly, a going concern problem does not always result in a disclaimer of opinion; the response depends on the specific circumstances and the adequacy of disclosure in the financial statements.

Which of the Following Statements Is True