The Auditors Have Determined That There Is Substantial Doubt About

question 40

Multiple Choice

The auditors have determined that there is substantial doubt about an entity's ability to continue as a going concern. When considering the appropriateness of management's disclosures and severity of the uncertainty, all of the following reports could be issued, except

• A)qualified opinion based on a material and pervasive uncertainty.
• B)unmodified opinion with an additional section describing the uncertainty.
• C)adverse opinion based on inadequate disclosure of the uncertainty.
• D)disclaimer of opinion based on a material and pervasive uncertainty.

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Definitions:

Analogy

A cognitive process of comparing two things based on their similarity in some respects, often used to explain concepts or ideas.

Comprehending

The cognitive process of understanding or making sense of texts, symbols, or situations.

Decision Making

The process(es) by which an individual selects one course of action from among alternatives.

Problem Solving

The process of finding solutions to difficult or complex issues.