Your audit of the Abbox Co. reveals that the firm's poor financial condition creates substantial doubt about its ability to continue as a going concern. Assuming that the financial statements have otherwise been prepared in accordance with generally accepted accounting principles and do include proper presentation of the matter, what disclosure should you make of the company's precarious financial position?

A. You should provide adequate disclosure and appropriately qualify your opinion because of the uncertainty.

B. You need not insist on any particular disclosure, since the company's poor financial condition is clearly indicated by the financial statements themselves.

C. You should issue an adverse opinion on the financial statements.

D. You should issue an unmodified opinion, but use an emphasis-of-matter paragraph to direct the reader's attention to the poor financial condition of the company as described in the financial statements and the notes.

Answer rating: 100% (QA)

Answer with explanation D You should issue an unmodified opin... View the full answer