RED Ltd is a new audit client for the 2019–2020 financial year. The issue identified during the audit was that RED was due to refinance a material amount of debt shortly after the prior year-end. You are aware that West Bank appeared unwilling to extend further finance, and RED had made adequate disclosure about the material uncertainty in the financial report. According to your judgement, the management use of the going concern assumption in the financial report is appropriate. Required: Indicate the type of audit opinion you would express and explain the reasons(s) supporting your choice of opinion.

Answer rating: 100% (QA)

We will be providing the unmodified opinion because we have already mentioned the fact that t... View the full answer