Accounting · Auditing and Going Concern
You have concluded that Strawberry is not a going concern. If the directors refuse to amend the financial statements, which of the following correctly describes the impact on the auditor's report?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Auditor's opinion: Adverse opinion; Explanation of circumstances: Basis for adverse opinion✓
- 2Auditor's opinion: Qualified opinion; Explanation of circumstances: Basis for qualified opinion
- 3Auditor's opinion: Adverse opinion; Explanation of circumstances: Material uncertainty related to going concern
- 4Auditor's opinion: Qualified opinion; Explanation of circumstances: Material uncertainty related to going concern
Correct answer
Auditor's opinion: Adverse opinion; Explanation of circumstances: Basis for adverse opinion
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