Springsteen Ltd. is a new audit client for the 2016 financial year. Springsteen’s financial report for the 2015 year, the last with the previous auditor, was prepared on the assumption of a going concern. An unmodified audit opinion with an emphasis of matter paragraph was included in the auditor’s report because of a 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 financing, and Springsteen had taken no steps to secure other financing. Springsteen did not disclose any information about the debt refinancing matter in its financial report. 

Required 

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