At the end of the audit the auditor has two issues outstanding. The first is a disagreement with those charged with governance concerning the use of an inappropriate valuation method for inventory (LIFO). The second issue is
Significant uncertainty as to whether the entity will continue as a going concern, which is adequately disclosed in
The notes to the accounts. What type of audit opinion should the auditor express?
A) Qualified opinion with an Emphasis of Matter.
B) Unmodified opinion.
C) Qualified opinion.
D) Unmodified opinion with an Emphasis of Matter.

Question

Quizplus · Accepted Answer

A qualified opinion is necessary due to the disagreement with those charged with governance about the inappropriate inventory valuation method. The auditor should also include an Emphasis of Matter paragraph to draw attention to the significant uncertainty over the entity's ability to continue as a going concern, which has been adequately disclosed in the notes to the accounts.

At the End of the Audit the Auditor Has Two