When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern and this has been adequately disclosed in the financial statements , the appropriate audit report would be:
A) an unmodified opinion with no emphasis of matter section.
B) a qualified opinion with an emphasis of matter section.
C) an adverse opinion with an emphasis of matter section.
D) an unmodified opinion with an emphasis of matter section.

Question

Quizplus · Accepted Answer

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern but this has been adequately disclosed in the financial statements, an unmodified opinion with an emphasis of matter section is the appropriate audit report. This emphasizes the disclosure about going concern in the financial statements without changing the overall opinion on the financial statements themselves.

When the Auditor Concludes That There Is Substantial Doubt About