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QUESTION - You are the auditor of MasterFood. As a result of your audit work, you discover that - MasterFood is currently trying to raise finance to fund operating activities. You believe that if the finance is not received, there is significant doubt over the going concern status of MasterFood. You conclude that the going concern assumption is appropriate, but you recommend that the financial statements should contain a note disclosing the cash flow problems faced by the company, a description of the finance being sought, and an evaluation of the going concern status of the company. The directors do not wish to include the note in the financial statements.
Explain the audit opinion which will be issued if: The directors agree to include the disclosure note.
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