Final answer:
The correct answer is A): AU-C 570 requires an emphasis-of-matter paragraph to be added to the unmodified report after the opinion paragraph when there is a going concern issue.
Step-by-step explanation:
When a client has a going concern issue, the auditor's approach is governed by AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern. This standard dictates that if a going concern issue is present, and if the auditor concludes that substantial doubt remains even after considering management's plans, the auditor is required to express these doubts in the audit report. This expression is done through the addition of an emphasis-of-matter paragraph. However, there's some confusion about the placement of this paragraph.
According to AU-C 570, if the auditor determines that a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern within one year following the date of the financial statements being audited, an emphasis-of-matter paragraph is necessary. This paragraph is added to the unmodified (i.e., clean) audit report to draw attention to the note in the financial statements that more fully describes the matter. The proper placement for this paragraph is after the opinion paragraph, not before it as that is the area designated for such explanatory material.
In summary, option A) is the correct choice. It is not the auditor's role to notify the SEC directly or recommend potential acquirers in the context of a going concern evaluation, as those activities are beyond the scope of AU-C 570.