If the Auditor Concludes That It Is Highly Improbable That

question 83

Multiple Choice

If the auditor concludes that it is highly improbable that the client will continue as a going concern, the auditor should, in accordance with ASA 700:

• A) issue a disclaimer of opinion.
• B) include an emphasis of matter section in the audit report.
• C) issue an unqualified report but explain the concerns in the opinion paragraph.
• D) express an adverse opinion.

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Definitions:

Profit-maximizing Quantity

The level of output at which a firm achieves its highest profit, where marginal cost equals marginal revenue.

Total Profit

The overall financial gain made by a business after subtracting all expenses from the total revenue.

Profit-maximizing Price

The price level at which a company can sell its product to achieve the maximum possible profit, taking into account demand and production costs.

Professional Organizations

Associations or groups that represent the interests of individuals within a specific profession, offering resources, networking opportunities, and professional development.