Question

When a client has a going concern issue, .AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern requires an _______.

1) emphasis-of-matter paragraph be added to the unmodified report, before the opinion paragraph
2) an emphasis-of-matter paragraph be added to the unmodified report, after the opinion paragraph
3) an explanatory paragraph be added to the unmodified report, after the opinion paragraph
4) an explanatory paragraph be added to the unmodified report, before the opinion paragraph

Answer 1

AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern requires an emphasis-of-matter paragraph be added to the unmodified report, before the opinion paragraph.

Step-by-step explanation:

When a client has a going concern issue, AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern requires an emphasis-of-matter paragraph be added to the unmodified report, before the opinion paragraph.