When there is material uncertainty about an auditee's ability to continue as a going concern,and the issue has been fully disclosed in the notes to the financial statements,the auditor should issue a qualified report with a paragraph drawing attention to the going concern issue.

Question

Quizplus · Accepted Answer

When there is material uncertainty about an entity's ability to continue as a going concern that has been adequately disclosed in the financial statements, the auditor may issue an unmodified opinion but include an emphasis-of-matter paragraph highlighting the going concern uncertainty, not necessarily a qualified report.

When There Is Material Uncertainty About an Auditee's Ability to Continue