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.

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Definitions:

Industrial Distributor

A business that purchases goods directly from manufacturers and sells them to companies, usually in large quantities for industrial use.

Global Broker

An intermediary who facilitates international transactions and investments between parties from different countries.

Chinese Market

The marketplace encompassing the buying, selling, and production of goods and services in China.

Direct To Consumer

A business model where companies sell directly to consumers, bypassing traditional retail intermediaries.