When the Auditor Concludes That There Is Substantial Doubt About

question 58

Multiple Choice

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern and this has been adequately disclosed in the financial statements , the appropriate audit report would be:

• A) an unmodified opinion with no emphasis of matter section.
• B) a qualified opinion with an emphasis of matter section.
• C) an adverse opinion with an emphasis of matter section.
• D) an unmodified opinion with an emphasis of matter section.

---

Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in the asset's value over time.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Useful Life

The estimated period over which an asset is expected to be used before it needs to be replaced or has significantly depreciated.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its acquisition, reducing its book value on the balance sheet.