<P> Substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time that arose in the current period does not imply that a basis for such doubt existed in the prior period and, therefore, should not affect the auditor's report on the financial statements of the prior period that are presented on a comparative basis . When financial statements of one or more prior periods are presented on a comparative basis with financial statements of the current period, reporting guidance is provided in section 508 . </P> <P> If substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time existed at the date of prior period financial statements that are presented on a comparative basis, and that doubt has been removed in the current period, the explanatory paragraph included in the auditor's report (following the opinion paragraph) on the financial statements of the prior period should not be repeated . </P> <P> Because the issuance of a going - concern opinion is feared to be a self - fulfilling prophecy, auditors may be reluctant to issue one . A going - concern opinion may lower stockholders' and creditors' confidence in the company; ratings agencies may then downgrade the debt, leading to an inability to obtain new capital and an increase in the cost of existing capital . In 1978, the AICPA formed an independent commission (the Cohen Commission) that issued a report expressing this sentiment: </P> <P> Creditors often regard a subject to qualification as a separate reason for not granting a loan, a reason in addition to the circumstances creating the uncertainty that caused the qualification . This frequently puts the auditor in the position, in effect, of deciding whether a company is able to obtain the funds it needs to continue operating . Thus, the auditor's qualification tends to be a self - fulfilling prophecy . The auditor's expression of uncertainty about the company's ability to continue may contribute to making it a certainty . </P>

A standard unqualified audit opinion is a guarantee that the business is a going concern