Which one of the following is an instance in which the auditor would add a paragraph after the opinion paragraph?
A)There is serious doubt that the client can continue as a going concern.
B)Management's disclosures are not adequate.
C)There are significant uncertainties that are not properly disclosed in the footnotes.
D)There is a material dollar misstatement on the financial statements.

Question

Quizplus · Accepted Answer

When there is serious doubt that the client can continue as a going concern, the auditor should add a "going concern" paragraph after the opinion paragraph to inform users of the financial statements about the uncertainty. This paragraph should explain the nature of the uncertainty and its potential effect on the client's ability to continue as a going concern. Choices B, C, and D may result in modifications to the auditor's report, but they would not necessarily require an additional paragraph after the opinion paragraph.

Which One of the Following Is an Instance in Which