An Auditor Concludes That There Is Substantial Doubt About an Entity's

question 163

Multiple Choice

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. The entity's financial statements adequately disclose its financial difficulties. Under these circumstances, the auditor's report is required to include an emphasis-of-matter paragraph that specifically uses the phrase(s) . $\begin{array}{llc}& \text { "Except for the Effects of}& \text {"Possible Discontinuance}\\& \text {Such Adjustments"}& \text {of the Entity's}\\& \text {Operations"}\\\end{array}$
A. $\begin{array}{llc}&&& \text { Yes } &&&&&&&&&& \text { Yes } \\\end{array}$
B. $\begin{array}{llc}&&& \text { Yes }&&&&&&&&&& \text { No } \\\end{array}$
C. $\begin{array}{llc}&&& \text { No } &&&&&&&&&& \text { Yes } \\\end{array}$
D. $\begin{array}{llc}&&& \text { No } &&&&&&&&&& \text { No }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include delusions, hallucinations, and disorganized thinking.

Psychoactive Drugs

Substances that affect the mind, mood, and other mental processes by altering brain function.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another, playing a key role in the functioning of the nervous system.