If There Is Concern That a Company Might Not Continue

question 122

Multiple Choice

If there is concern that a company might not continue in existence, but the auditor has concluded that the financial statements are fairly presented, the opinion that will be issued is a(n) ________.

• A) disclaimer of opinion
• B) unqualified opinion with explanatory paragraph
• C) adverse opinion
• D) qualified opinion

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Definitions:

Activity Variances

The differences between the planned amounts of costs based on standard cost rates and activities, and the actual incurred costs.

Guests

Individuals who are invited to or visit a place or event, typically receiving hospitality from the host.

Planning Budget

A planning budget refers to a financial plan that estimates income, expenditure, and resources over a certain period, tailored to achieve specific goals or objectives.

Customers Served

The number of clients or customers to whom a business has provided products or services.