If a going-concern uncertainty exists,auditors may not issue which of the following reports on the entity's financial statements?
A) An unqualified opinion with an additional paragraph explaining the going-concern problem.
B) An adverse opinion because of a pervasive departure from GAAP.
C) A disclaimer of opinion resulting from an uncertainty about the ability of the entity to continue in existence.
D) An opinion qualified for a GAAP departure if the auditors believe the disclosures about going-concern problems are inadequate.

Question

Quizplus · Accepted Answer

If a going-concern uncertainty exists, auditors may issue an unqualified opinion with an additional paragraph explaining the going-concern problem, an opinion qualified for a GAAP departure if the auditors believe the disclosures about going-concern problems are inadequate, or a disclaimer of opinion resulting from an uncertainty about the ability of the entity to continue in existence. However, auditors cannot issue an adverse opinion solely because of a going-concern uncertainty. An adverse opinion is reserved for situations where there is a pervasive departure from GAAP.

If a Going-Concern Uncertainty Exists,auditors May Not Issue Which of the Following