Independent Auditors Must Consider Whether the Entity Has the Ability

question 116

Multiple Choice

Independent auditors must consider whether the entity has the ability to continue as a going concern. If a substantial doubt exists but disclosure is adequate and no other basis exists for modifying the report, the auditors would normally

• A)disclaim an opinion.
• B)express an adverse opinion.
• C)qualify the opinion.
• D)express an unmodified opinion with an additional section describing the going-concern uncertainty.

---

Definitions:

Genetic Factors

Elements within an organism's genetic makeup that influence its physical and behavioral traits.

Intelligence

The ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

Changeable Intelligence

The concept that an individual's intellectual capacities can grow and change with time and experience.

Polygenetic

Related to or involving many genes, explaining the inheritance of complex traits that are affected by multiple genetic factors.