In the case of Ruhan Airlines Ltd., suppose instead that a material uncertainty about going concern exists but management refuses to disclose it adequately in the financial statements. The auditor shall express:

Correct answer: A) A qualified or adverse opinion, as appropriate, and explain in the Basis for Opinion section that a material uncertainty exists that is not adequately disclosed

Explanation

SA 570 requires that if adequate disclosure about a material uncertainty is not made, the auditor shall express a qualified or adverse opinion as appropriate under SA 705. The Basis for Opinion section states that a material uncertainty exists that may cast significant doubt and that the financial statements do not adequately disclose it.