You have completed the audit of Epsilon Group Ltd, noting that they had suffered a significant IT outage during the year which led to substantial costs in upgrading systems and a consequential decrease in profitability from the prior year. Key accounting records were also lost for the first three quarters of the financial year. You noted on review of the Directors report they discussed a significant increase in profitability from the prior year. This inconsistency was raised with management, but they declined to change the discussion. What is the most appropriate audit opinion?

a. Unmodified

b. Qualified

c. Adverse

d. Disclaimer of opinion

In relation to the audit report for the Epsilon Group Ltd. example above, what is the most appropriate additional paragraph(s), if any?

a. None

b. Emphasis of Matter

c. Other Information

d. Material Uncertainty related to Going Concer