If substantial doubt remains about going concern for a client at the end of the audit,then which of the following reports should the auditor typically issue?
A)Issue an unqualified audit report.
B)Issue an unqualified audit report with an explanatory paragraph.
C)Issue a qualified report.
D)Issue an adverse report.

Question

Quizplus · Accepted Answer

If substantial doubt remains about going concern for a client at the end of the audit, the auditor should issue an unqualified audit report with an explanatory paragraph. This paragraph should disclose the reasons why substantial doubt exists about the entity’s ability to continue as a going concern and highlight management’s plans to address the situation. An explanatory paragraph does not affect the overall opinion of the auditor, but it provides additional information for stakeholders to consider while making decisions.

If Substantial Doubt Remains About Going Concern for a Client