Accounting · Going Concern Disclosures
When an engagement partner concludes that there is a material uncertainty relating to going concern and the management has correctly and adequately disclosed this uncertainty in the financial statements, which statement regarding the auditor's report is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An unqualified audit opinion will be given, and a separate 'Material Uncertainty Related to Going Concern' (MURGC) section will be added to the report.✓
- 2An unqualified audit opinion will be given, and an Emphasis of Matter (EOM) section will be used to highlight the issue.
- 3An adverse opinion must be given because going concern is fundamental to the users' understanding.
- 4An unmodified audit report will be issued with no special paragraphs or emphasis sections.
Correct answer
An unqualified audit opinion will be given, and a separate 'Material Uncertainty Related to Going Concern' (MURGC) section will be added to the report.
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