Question $25($Mandatory$)(8$ points$)$

An auditor has concluded that there is substantial doubt about a company's ability to continue as a going concern and the financial statements disclose the solvency issues causing the uncertainty. What is the most appropriate type of audit report?

Adverse opinion because liquidation accounting rather than GAAP should be applied.

Unqualified opinion with an explanatory paragraph.

"Except for" qualified opinion.

Standard unqualified opinion.