When the Auditor Concludes That There Is Substantial Doubt About

question 48

Multiple Choice

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, and this fact is adequately disclosed in the notes to the financial statements, the auditor's report should express:

• A) a qualified opinion due to the uncertainty.
• B) an unqualified opinion, with a fourth (explanatory) paragraph.
• C) the standard unqualified opinion.
• D) a disclaimer of opinion.
• E) an adverse opinion.

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Definitions:

Puffery

Exaggerated or hyperbolic promotion of a product or service that is subjective and not meant to be taken literally.

Lanham Act

A federal statute in the United States that governs trademarks, service marks, and unfair competition, providing protection for brand identities and combating misleading practices.

Misleading Food Advertisements

Advertising practices that falsely represent the quality, nutritional value, or origin of food products, potentially deceiving consumers.

FDA

The Food and Drug Administration, a U.S. federal agency responsible for regulating food, drugs, medical devices, and cosmetics.