If the Auditor Determines That the Client's Current Ratio Is

question 62

Multiple Choice

If the auditor determines that the client's current ratio is below a particular covenant level,which of the following would the auditor not do?

• A)Assess the effects of the violation.
• B)Assume that the debt will need to be reclassified,if the violation is not waived.
• C)Consider that the debt will be due and payable,if the violation is not waived.
• D)Issue an adverse audit opinion.

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