CASE: You are auditing Aveland Pty Ltd (Aveland). This is the first time your firm has performed the audit. The audit has progressed well, and you are satisfied with Avelands accounting and the overall presentation of the financial statements.

During one of your meetings with Avelands CFO, she suggested that the economic outlook for the company was not as positive as it had been, and expressed a concern about the applicability of the going concern assumption. You both agreed that, at this stage, it was appropriate for Aveland to prepare the accounts on the going concern basis, but the concerns expressed by the CFO should be disclosed in the financial statements.

REQUIRED: (i) State the audit opinion that you believe is warranted.

(ii) Give the reason for selecting this audit opinion.

(iii) State any issues you believe you should bring to the attention of readers of your audit report.

(iv) For any issues, identified in (iii) above, state the title of the paragraph in which you mention the issue.