When a material uncertainty exists, the auditor must
A) disclose it in the audit report.
B) first determine the materiality of the item and whether adequate disclosure is included in the financial statements.
C) issue a disclaimer of opinion.
D) issue a qualified opinion.

Question

Quizplus · Accepted Answer

The auditor must first determine the materiality of the uncertainty and whether the financial statements adequately disclose it. If the disclosure is adequate, the auditor may issue an unmodified opinion with an emphasis of matter paragraph.

When a Material Uncertainty Exists, the Auditor Must