If the Auditor Discovers That Management Intends to Liquidate the Entity

question 22

Multiple Choice

If the auditor discovers that management intends to liquidate the entity:

• A) the going concern basis is inappropriate.
• B) it is irrelevant if they did not intend to liquidate the entity at reporting date.
• C) it requires inclusion as a disclaimer of opinion.
• D) it requires inclusion as an 'except for'.

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Definitions:

Auscultating

The act of listening to the internal sounds of the body, typically using a stethoscope, for medical diagnosis.

Stethoscope

A medical instrument used by healthcare professionals to listen to internal sounds of the body, particularly heart and lung sounds.

Health Assessment

The comprehensive evaluation of a person’s physical, psychological, and social health status, performed by a healthcare professional.

Lindane-Based

Refers to products or medications containing Lindane, a chemical used to treat lice and scabies by affecting the nervous system of these parasites.