Unformatted text preview: the departure in an explanatory paragraph, but may issue an unqualified opinion on the financial
Choices "b", "c", and "d" are incorrect. The auditor's opinion need not be qualified or adverse since the
financial statements are presented fairly. 4
© 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Auditing and Attestation 1
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 financial statements adequately disclose its
financial difficulties, the auditor's report is required to include an explanatory paragraph that specifically
uses the phrase(s): a.
d. "Reasonable period
of time, not to exceed
No "Going concern"
Choice "c" is correct. The auditor has a responsibility to evaluate whether there is substantial doubt about
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- Fall '12