Richards Ltd Has Reported Losses Two Years in a Row

question 13

Multiple Choice

Richards Ltd has reported losses two years in a row and has a debt to total assets ratio of 0.90.In addition, a $5 million debenture is maturing next year and the company has not set aside any funds to repay the debt.The parent entity of Richards Ltd has decided to repay the debenture when it matures and provide sufficient funding to cover any additional losses that Richards Ltd might incur.Richards Ltd has not disclosed these arrangements in its financial report and the auditor is adamant that it should be brought to the shareholders' attention.What type of opinion should the auditor express on the financial report of Richards Ltd?

• A)Disclaimer of opinion.
• B)Unmodified opinion with an Emphasis of Matter.
• C)Unmodified opinion with a Material Uncertainty Related to Going Concern paragraph.
• D)Qualified opinion or adverse opinion.

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Definitions:

Session Interventions

Specific strategies or techniques employed by therapists during a therapy session aimed at facilitating client insight, problem-solving, or behavior change.

Internal Buy-in

The process of garnering support and agreement within an organization for a project or initiative, ensuring that stakeholders are committed to its success.

Brand Logic

The underlying rationale or strategic framework that guides how a brand communicates, behaves, and presents itself in the market.

Internal Support

The assistance and resources provided by an organization to its members or employees to ensure successful performance and satisfaction.