Question

Client has breached debt covenants; lender issued waiver valid for 9 months after balance sheet date. Auditor notes liquidity support from group company but no formal commitment. What should auditor conclude?

A No going concern issue; waiver suffices.
B Material uncertainty exists; include separate “Material Uncertainty Related to Going Concern” paragraph.
C Adverse opinion required.
D Disclaimer of opinion required.
E No disclosure if waiver covers 9 months.
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