When There Is Material Uncertainty About an Auditee's Ability to Continue

question 46

True/False

When there is material uncertainty about an auditee's ability to continue as a going concern is doubtful, and the issue has been fully disclosed in the notes to the financial statements, the auditor should issue a qualified report with a paragraph drawing attention to the going concern issue.

---

Definitions:

French Menace

Historically, this term has referred to the threat perceived or real posed by France to other nations, particularly during periods of conflict such as the Napoleonic Wars.

Whiskey Rebellion

A tax protest in the United States beginning in 1791, during the presidency of George Washington, primarily against the imposition of a tax on distilled spirits.

Democratic Societies

Democratic Societies are organizations or communities that operate on the principles of democracy, emphasizing equality, and the participation of members in decision-making processes.

Society of the Cincinnati

An exclusive hereditary society formed in 1783 by officers of the Continental Army and their French counterparts who served in the American Revolutionary War to promote fellowship and honor their service.