An independent auditor has concluded that substantial doubt remains about a nonpublic client's ability to continue as a going concern,but the client's financial statements have properly disclosed all of its solvency problems.The auditor would probably issue a(an):
A)Unmodified opinion with an appropriate emphasis-of-matter paragraph.
B)"Except for" qualified opinion.
C)Standard unmodified opinion.
D)Adverse opinion.

Question

Quizplus · Accepted Answer

The independent auditor would issue an unmodified opinion with an appropriate emphasis-of-matter paragraph to disclose the substantial doubt about the client's ability to continue as a going concern. This opinion is sometimes referred to as a "going concern opinion." The fact that the financial statements have properly disclosed all of its solvency problems also supports the issuance of an unmodified opinion. A qualified opinion, adverse opinion, or disclaimer of opinion would not be appropriate in this situation.

An Independent Auditor Has Concluded That Substantial Doubt Remains About