If an auditor has serious going concern issues regarding the client, but the financial statements are correctly stated, then the auditor should:
A) issue an adverse opinion.
B) issue a disclaimer of opinion.
C) issue an unqualified opinion with appropriate explanatory language.
D) perform analytical procedures of the adjusted financial statements.

Question

Quizplus · Accepted Answer

If the financial statements are correctly stated but the auditor has serious going concern issues regarding the client, the auditor should issue an unqualified opinion with appropriate explanatory language. The explanatory language should clearly disclose the going concern issues and provide additional information to users of the financial statements. This will ensure that the financial statements are not misleading, while also providing important information to stakeholders.

If an Auditor Has Serious Going Concern Issues Regarding the Client