ACCA AA 2026: The Going Concern Report Question You Keep Getting Wrong
The going concern report question is free marks — and you're skipping it
Every AA sitting has an auditor's report question, and going concern is a favourite. The examiner's own words: a minority of candidates don't even attempt it. The rest lose marks on two things — picking the wrong opinion, and getting the terminology wrong. Both are fixable tonight.
What the examiner actually said
In the March/June 2025 AA exam, the Everest Co question (requirement d, 5 marks) asked candidates to discuss a going concern issue and describe the impact on the auditor's report under adequate and inadequate disclosure. Marks split cleanly: 1 for the issue, 2 for adequate disclosure, 2 for inadequate. Candidates who answered both sides scored well. Many only considered inadequate disclosure — and threw away the two easiest marks in the question.
The whole answer pivots on one question: has the company disclosed the uncertainty adequately? If yes, the opinion is unmodified — the statements are true and fair. But you still add a Material Uncertainty Related to Going Concern paragraph, cross-referenced to the disclosure note, with a clear statement that the opinion is not modified. If disclosure is inadequate, there's a material misstatement, so the opinion is modified — here a qualified opinion, as it's material but not pervasive.
Terminology quietly bleeds marks. The report notes: no credit for recommending an "unqualified" opinion — it's unmodified. And it's the opinion that gets modified, not "the report." A modified opinion also changes the Basis for Opinion paragraph, which explains why. Name all of it.
One more trap the examiner calls out directly: an Emphasis of Matter paragraph is not relevant for going concern uncertainties. If you reach for it here, you're wrong — and it's a common instinct.
Wrong answer vs right answer
Scenario: material going concern uncertainty, and the directors have disclosed it fully in the notes.
Wrong: "The uncertainty is material, so a qualified opinion is needed, with an Emphasis of Matter paragraph highlighting it."
Right: "Disclosure is adequate, so the opinion is unmodified. A Material Uncertainty Related to Going Concern paragraph is included, cross-referenced to the note, stating the opinion is not modified in this respect."
Same facts, opposite marks. Adequate disclosure never forces a modified opinion — that's the single most misread point in the topic.
Three things to do in the exam
1. Split the answer into two headings: adequate and inadequate. The examiner said candidates who structured it this way scored more; those who didn't usually forgot the adequate side entirely. Two headings guarantee you bank both halves.
2. State the opinion AND the reason. Don't stop at "qualified." Say qualified, adverse, or disclaimer, and whether it's due to a material misstatement or an inability to obtain sufficient appropriate evidence — then note the Basis for Opinion paragraph changes.
3. Ban two phrases. Never write "the report is qualified" (it's the opinion) or reach for "Emphasis of Matter" on going concern. Neither earns a mark, and both signal rote learning.
Bottom line
At 1.8 minutes a mark, this is a nine-minute question — and a chunk of candidates score zero on it by skipping the requirement or defaulting to a modified opinion. Learn the adequate-versus-inadequate split, name the opinion and the paragraph precisely, and it becomes one of the most bankable five marks on the paper. Don't leave it blank.