[Anonymous]

An auditor concludes that there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. If the entity’s disclosures concerning this matter are adequate, the audit report may include a(n)

Disclaimer of opinion Yes No

Qualified opinion Yes No

Answer

Disclaimer of opinion: Yes

Qualified Opinion: No

This answer is correct because while a disclaimer of opinion may be appropriate, a “except for” qualified opinion is never appropriate when substantial doubt about an entity’s ability to continue as a going concern has been adequately disclosed.

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If a company properly discloses the substantial doubt, wouldn’t a unmodified opinion be more appropriate?

[jstay]

yesit would be, and most likely they will issue an unmodified with an emphasis of matter . however, they still have the option to issue a disclaimer

[salring]

When there is substantial doubt as whether an entity will continue as a going concern the auditor can either express an unmodified opinion with emphasis of matter paragraph or issue a disclaimer.

[Author]

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