For each case, state the type of audit opinion which should be expressed and provide an explanation for your choice of audit opinion in each case
Due to recurring operating losses and ongoing working capital deficiencies, the auditor has some serious doubts about BMP Ltd.’s ability to continue as a going concern for a reasonable period of time. However, the financial statement disclosures concerning these matters, which you have now reviewed and evaluated, are adequate, and the BMP Ltd. senior management team has been co-operative and helpful with all information requests. Nonetheless, your professional scepticism leads you to suspect there are likely to be serious operational challenges for BMP Ltd in the next twelve months.
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