Apricot Industries is a new audit client for the 2020–21 financial year. Apricot’s financial report for the 2019–20 year, the last with the previous auditor, was prepared on the assumption of a going concern. The auditor’s report included a discussion of the going concern issue. The issue identified by the auditor was that Apricot was due to refinance a material amount of debt shortly after the prior year-end. You are aware that Statewide Bank appeared unwilling to extend further finance, and Apricot had taken no steps to secure other finance. Apricot did not disclose any information about the debt refinancing matter in its financial report.

Required

Was the opinion in the auditor’s report appropriate? Explain.