Going concern issues should be addressed by the auditor:
A) in an explanatory paragraph.
B) in the scope paragraph.
C) in the annual report.
D) All of the above.

Question

Quizplus · Accepted Answer

Going concern issues are addressed in an explanatory paragraph in the auditor's report. This paragraph informs investors and other stakeholders about the possibility of the company not being able to continue its operations for an extended period of time. This is an important disclosure as it impacts the company's financial statements and, consequently, the stakeholders' decisions about investing in or lending to the company.

Going Concern Issues Should Be Addressed by the Auditor