CAF-8 · Chapter 14 · Question 8 of 10
The auditor concludes that a material uncertainty exists regarding the entity's ability to continue as a going concern, and management has ADEQUATELY disclosed this in the financial statements. What reporting action is required?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Issue an unmodified opinion and include a separate section titled 'Material Uncertainty Related to Going Concern'.
Explanation
Under ISA 570, if the material uncertainty is adequately disclosed, the auditor expresses an unmodified opinion but must draw attention to the disclosure by including a specific, separately titled section: 'Material Uncertainty Related to Going Concern'.
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