An auditor should issue a qualified opinion with an explanatory paragraph whenever there is a material uncertainty affecting the financial statements.

Question

Quizplus · Accepted Answer

An auditor may issue a qualified opinion if there is a material misstatement that is not pervasive. However, for material uncertainties that cast significant doubt on the entity's ability to continue as a going concern, the auditor would add an emphasis-of-matter paragraph to the audit report, not necessarily issue a qualified opinion.

An Auditor Should Issue a Qualified Opinion with an Explanatory