Springsteen Ltd is a new audit client for the 2015–16 financial year. Springsteen’s financial report for the 2016–17 year, the last with the previous auditor, was prepared on the assumption of a going concern. The auditor’s report included a discussion of the going concern issue. The issue identified by the auditor was that Springsteen was due to refinance a material amount of debt shortly after the prior year-end. You are aware that Eastcoast Bank appeared unwilling to extend further finance, and Springsteen had taken no steps to secure other finance. Springsteen did not disclose any information about the debt refinancing matter in its financial report.

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Was the opinion in the auditor’s report appropriate? Explain.