Accounting · Going Concern
The auditors have been informed that Clarinet's bankers will not make a decision on the overdraft facility until after the auditor's report is completed. The directors have now agreed to include some going concern discl osures, and you believe these disclosures are adequate. Which of the following correctly summarises the impact on the auditor's report of Clarinet if the auditor believes the company is a going concern but that this is subject to a material uncertainty?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Opinion: Modified; Disclosure: Key audit matters
- 2Opinion: Unmodified; Disclosure: Material uncertainty related to going concern section✓
- 3Opinion: Unmodified; Disclosure: Key audit matters
- 4Opinion: Modified; Disclosure: Material uncertainty related to going concern section
Correct answer
Opinion: Unmodified; Disclosure: Material uncertainty related to going concern section
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