Question: 7. Your audit client, Roe Limited (RL), has found operations more challenging this financial year due to impacts resulting from Covid-19. RL are struggling to

7. Your audit client, Roe Limited (RL), has found operations more challenging this financial year due to impacts resulting from Covid-19. RL are struggling to meet their cashflow and profitability projections required by the bank as part of their debt covenant. You are aware that the bank has indicated this situation may affect the financing arrangements currently in place which are critical to the success of RLs business. As the auditor you are concerned about this issue, although it has been appropriately disclosed in the financial statements, which you believe are fairly stated. What is the most appropriate audit opinion? a. Unmodified b. Qualified c. Adverse d. Disclaimer of opinion

In relation to the audit report for Roe Limited example above, what is the most appropriate additional paragraph/section, if any? a. None b. Emphasis of Matter c. Other Information d. Material Uncertainty related to Going Concern

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