The financial report of Quick Buck Ltd indicates that there may be some going concern problems. However, the auditor concludes, based on mitigating factors, that the client will most likely continue as a going concern during the next year. The mitigating factors are adequately disclosed in the accounts. What type of audit opinion should the auditor express?
A) Disclaimer of opinion.
B) Unmodified opinion.
C) Qualified or adverse opinion.
D) Unmodified opinion with an Other Matter paragraph.

Question

Quizplus · Accepted Answer

The mitigating factors are adequately disclosed in the accounts and the auditor concludes that the client will most likely continue as a going concern during the next year, there are no material uncertainties and the financial statements are fairly presented. Therefore, an unmodified opinion is appropriate.

The Financial Report of Quick Buck Ltd Indicates That There