At the end of the audit the auditor has two issues outstanding.The first is a disagreement with those charged with governance concerning the use of an inappropriate valuation method for inventory (LIFO).The second issue is significant uncertainty as to whether the entity will continue as a going concern, which is adequately disclosed in the notes to the accounts.What type of audit opinion should the auditor express?
A)Qualified opinion with a Material Uncertainty Related to Going Concern paragraph..
B)Unmodified opinion.
C)Qualified opinion.
D)Unmodified opinion with a Material Uncertainty Related to Going Concern paragraph.

Question

Quizplus · Accepted Answer

The auditor should express a qualified opinion with a Material Uncertainty Related to Going Concern paragraph. This is because there is a disagreement with those charged with governance concerning the use of an inappropriate valuation method for inventory (LIFO) and a significant uncertainty as to whether the entity will continue as a going concern, which is adequately disclosed in the notes to the accounts.

At the End of the Audit the Auditor Has Two