Question: Your client suffered a big drop in sales, and consequently a big loss this year. However, this situation has been explained sufficiently in the financial
Your client suffered a big drop in sales, and consequently a big loss this year. However, this situation has been explained sufficiently in the financial statements. There are concerns that the company may declare bankruptcy. Based on that, which of the following opinions would you issue?
Question options:
Unqualified opinion with an explanation for going concern
Adverse opinion since the amount of loss is both material and pervasive
Disclaimer opinion to withdraw from the engagement, since you do not want to be associated with a lossmaking client
Qualified opinion for scope limitation
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