While performing a compilation of financial statements, information indicating that the entity whose information is being compiled may lack the ability to continue as a going concern has come to the accountant’s attention. The client agrees that such a situation does exist, but refuses to add disclosures relating to it. What effect is this most likely to have on the accountant’s review report?
a. No effect, a standard unqualified report is appropriate.
b. The report should indicate a departure from generally accepted accounting principles, with modification of the report’s third paragraph and addition of an explanatory paragraph.
c. An adverse opinion should be issued, with modification of the opinion paragraph and addition of an explanatory paragraph.
d. A qualified opinion should be issued, with modification of the opinion paragraph and addition of an explanatory paragraph.