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:

Intrapreneurship

The practice of fostering an entrepreneurial spirit within an existing company, encouraging employees to pursue innovative projects.

Profitable New Products

Goods or services recently introduced to the market that generate earnings exceeding their cost of production.

Larger Organisation

An organization that is significant in size, possibly with multiple departments, a wide range of functions, and a large number of employees.

Minority Owned Business

A business that is at least 51% owned, operated, and controlled by individuals belonging to a racial or ethnic minority group.