When an Auditor Concludes There Is Substantial Doubt About an Entity's

question 32

Multiple Choice

When an auditor concludes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to

• A)Prepare prospective financial information to verify whether management's plans can be effectively implemented.
• B)Project future conditions and events for a period of time not to exceed one year following the date of the financial statements.
• C)Issue a qualified or adverse opinion, depending upon materiality, due to the possible effects on the financial statements.
• D)Consider the adequacy of disclosure about the entity's possible inability to continue as a going concern.

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Definitions:

Feeding Tubes

Medical devices used to provide nutrition to individuals who cannot obtain nutrition by mouth, are unable to swallow safely, or need nutritional supplementation.

Intensive Care

Highly specialized medical care provided to patients with life-threatening or severe illnesses or injuries, typically involving close monitoring and support from advanced medical equipment and professionals.

Holographic Will

A will entirely handwritten, signed, and dated by the person making it, often without the presence of witnesses.

Testator

A person who makes a will.