With respect to management's disclosure required for going concern issues, _______.
A)if management determines that the disclosure is fairly presented in accordance with the applicable financial reporting framework, then an unmodified auditor's report can still be issued
B)if auditors determine that the disclosure is fairly presented in accordance with the applicable financial reporting framework, then an unmodified auditor's report can still be issued
C)the auditor should advise management that they are now unable to issue an unmodified audit opinion
D)the auditor should advise management that they are now unable to issue a modified audit opinion

Question

Quizplus · Accepted Answer

If management's disclosure of going concern issues is determined to be fairly presented in accordance with the applicable financial reporting framework by auditors, then an unmodified auditor's report can still be issued. However, if the auditors determine that the disclosure is inadequate, then a modified audit opinion may be issued. The auditor should also advise management of their inability to issue an unmodified opinion if they are not satisfied with the disclosure.

With Respect to Management's Disclosure Required for Going Concern Issues