The auditor of Shakey Ltd has serious doubts that the entity will continue as a going concern. There is adequate disclosure of this significant uncertainty in the notes to the financial report. The uncertainty is the result of a single
Factor affecting the client. What type of audit opinion should the auditor express?
A) Unmodified opinion with an Other Matter paragraph.
B) Qualified opinion.
C) Adverse opinion.
D) Unmodified opinion with an Emphasis of Matter paragraph.

Question

Quizplus · Accepted Answer

An unmodified opinion with an Emphasis of Matter paragraph is appropriate when there is adequate disclosure of a significant uncertainty, such as going concern doubts, in the financial statements.

The Auditor of Shakey Ltd Has Serious Doubts That the Entity