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so, we are supposed to select statements that wd be examples of ‘expectations gap’
the answer includes a statement given below:
“an unmodified opinion means that the company is a going concern”
what has this statement have anything to do with exp. gap?
as i read it, the gap simply means
1 auditors test 100% transactions
2. auditors detect all frauds
3. auditors prepare FSthanks
It also relates to what can be inferred from an unmodified opinion.
Such an opinin does not mean that the company is a good one or sae one to nvest in.
If there were going concern issues that had been disclosed in the notes there would likely be an emphasis matterreport but the audit opinion would be unmodified.
So unmodified an opinion could be given about a copmany that was at risk.
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