Typically, When a Going Concern Issue Exists the Auditor Should

question 38

Multiple Choice

Typically, when a going concern issue exists the auditor should:

• A) Issue an unmodified opinion with an emphasis-of-matter paragraph
• B) Issue a modified opinion and explain the reasons for the going concern issue
• C) Issue a disclaimer of opinion
• D) Withdraw from the engagement

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Definitions:

Scarce Goods

Goods that are limited in supply in comparison to their demand, leading to economic decisions regarding their allocation.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.

Demand Curve

A diagram illustrating how the price of a product correlates with the amount of that product buyers are prepared and can afford to buy at different price levels.

Inverse Relationship

A situation in which two variables move in opposite directions, meaning that as one variable increases, the other decreases, and vice versa.