Which of the following is an instance where the auditor would add a paragraph in a report expressing an unqualified opinion?
A)There is serious doubt that the client can continue as a going concern.
B)Management's disclosures are not adequate.
C)There are significant uncertainties that are not properly disclosed in the footnotes.
D)There is a material dollar misstatement in the financial statements.

Question

Quizplus · Accepted Answer

When there is serious doubt about the client's ability to continue as a going concern, auditors add an emphasis-of-matter paragraph to the audit report to draw attention to the note in the financial statements that discusses these doubts. This is done even when the audit opinion is unqualified, meaning the financial statements present fairly, in all material respects, the financial position of the entity.

Which of the Following Is an Instance Where the Auditor