When a Client Has a Going Concern Issue, _______

question 64

Multiple Choice

When a client has a going concern issue, _______.

• A)AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern requires an emphasis-of-matter paragraph be added to the unmodified report, after the opinion paragraph
• B)AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern requires an emphasis-of-matter paragraph be added to the unmodified report, before the opinion paragraph
• C)the auditor must notify the Securities and Exchange Commission (SEC) within ten business days
• D)the auditor should recommend a potential acquirer

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Definitions:

Macroeconomic Instability

Occurs when an economy experiences high levels of volatility in factors such as inflation, growth rates, and unemployment, often leading to economic downturns.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, promoting trading benefits.

Trade Patterns

The trends and regularities observed in international trade, including what goods and services are traded, and with which partners countries trade.

Tight Money Policy

A monetary policy strategy aiming to reduce the money supply in the economy to control inflation or stabilize the currency.