Misunderstanding

10 - I made an error should be B! Will be corrected soon. 12 - for (1) it is for management to assess going concern and for auditors to review that. If management does not carry out the review, there is no sufficient appropriate audit evidence. EoM only draws attention to something properly disclosed in the FS. Therefore (1) is not correct. For (2) if the going concern assumption is inappropriate, the FS contain material misstatements so should qualify, so probably (2) is correct. It could be a bit of a trick, however, depending on how accurately the examiner uses the term 'qualify'. Perhaps they want you to conclude that an adverse opinion is needed, in which case the answer is D. It also depends on how the FS are drawn up. If they are actually drawn up on a break-up basis, then no modification of the opinion is needed. I think it's a rather ambiguous question.

Glad to hear from you. Sir but once the going concern is inappropriate not means the the whole financial statements is meaningless? The it should be both material and pervasive not?

Yes, drawing up the account on FS lines when not appropriate would be pervasive, but I don't know how accurately the term 'qualified' has been used. See my modified answer above also.

hi gromit. i think the answer for 12 is D it should be adverse opinion when going concern assumption is inappropriate. its written here in technical article https://www.accaglobal.com/uk/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f8/technical-articles/going-concern.html what do you say?

yes an another clarification would be great about Q3. isnt option D a precondition of an audit? i m abt confused.