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From what i understand and according to Becker book texts,
significant doubt about going concern –> disclaimer of opinion
substantial doubt on going concern –> unmodified opinion with E-o-M paragraphso i selected d. what the hell. it’s b. any more consistent idea on substantial doubt on going concern reporting?
Questoin:
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(an):
Disclaimer of opinion “Except for” qualified opinion
a.Yes Yes
b.Yes No
c.No Yes
d.No NoBecker Explanation
Choice “b” is correct. Yes – No.
If an auditor concludes that there is substantial doubt about an entity’s ability to continue as a going concern and that the entity’s disclosures are adequate, then the audit report may be either:
Unmodified with emphasis-of-matter paragraph, or
Disclaimed.
(Generally, an unmodified opinion is issued, but the auditor is not prohibited from choosing to issue a disclaimer.)
Choice “a” is incorrect. An “except for” qualified opinion would be appropriate if the entity’s disclosures were inadequate.
Choice “d” is incorrect. While an unmodified opinion is generally issued, the auditor is not prohibited from choosing to issue a disclaimer; for example, in areas involving a high degree of uncertainty.
Choice “c” is incorrect, based on the explanation above.
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