Smith CPAs have requested that an audit client add a note disclosure to the financial statements related to their ability to operate as a

going concern. The client has refused to do so; citing differences in opinion on some key loans that they believe will be refinanced.

What should the auditors do at this point?

The auditors should request a meeting with the client's board of directors, and discuss the issue with them.

The auditors should consider disclaiming an opinion on the financial statements to preserve the reputation of the firm.

The auditors should consider issuing a scope limitation$,$ on the basis that management is not willing to make the necessary

amendment.

The auditors should consider modifying the opinion for a material departure.