Which of the Following Best Describes Auditors' Responsibilities with Respect

question 21

Multiple Choice

Which of the following best describes auditors' responsibilities with respect to evaluating the going-concern status of the entity?

• A)Auditors are required to specifically gather evidence with respect to going-concern status and separately report on the entity's ability to continue as a going concern.
• B)Auditors are required to specifically gather evidence with respect to going-concern status and modify their report on the financial statements if substantial doubts exist.
• C)Auditors are required to consider evidence obtained during the audit that may provide information with respect to going-concern status and separately report on the entity's ability to continue as a going concern.
• D)Auditors are required to consider evidence obtained during the audit that may provide information with respect to going-concern status and modify their report on the financial statements if substantial doubts exist.

---

Definitions:

IPO

Initial Public Offering, which is the process by which a private company goes public by selling its shares to the public for the first time.

Road Show

A series of presentations made across different locations by company executives to potential investors, typically ahead of an initial public offering (IPO).

Effective Control

The ability to direct the strategic outcomes of a process or organization, typically through majority ownership or other mechanisms of influence.

Widely Held Companies

Corporations owned by a large number of shareholders, meaning ownership is dispersed rather than concentrated.