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Auditor will provide unmodified opinion with emphasis of matter paragraph if auditor while auditing the financial statements comes across indicators that prove that the entity has substantial doubt of ability to continue as going concern. The doubt is measured for a reasonable period of time which not more than one year from the date of financial statements audited. Auditor also has an option to disclaim an opinion. But before concluding, auditor needs to evaluate management plans for dealing with conditions that indicate going concern doubt. If after evaluating management plans substantial doubt still exists, auditor will continue to provide unmodified opinion with emphasis of matter paragraph or disclaim an opinion. In either case, auditor is required to use words like "substantial doubt" and "going concern". If auditor is convinced with the management plans for dealing with the indicators of substantial doubt of going concern and believes that substantial doubt does not exists, auditor will provide unmodified opinion considering the adequacy of note disclosures in the financial statements.
