ExpertCPA · Question 38 · Area III: Performing Procedures
An auditor is auditing the financial statements of a nonissuer. The auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. Management has developed a plan that the auditor concludes is probable of being effectively implemented and probable of mitigating the conditions. The financial statements adequately disclose the conditions and the plan. What type of report should the auditor issue?
An auditor is auditing the financial statements of a nonissuer. The auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. Management has developed a plan that the auditor concludes is probable of being effectively implemented and probable of mitigating the conditions. The financial statements adequately disclose the conditions and the plan. What type of report should the auditor issue?
Answer options:
Unmodified opinion with no emphasis-of-matter paragraph.
Unmodified opinion with an emphasis-of-matter paragraph regarding going concern.
Qualified opinion due to the uncertainty.
Disclaimer of opinion.
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