If the Auditor Discovers That Management Intends to Liquidate the Entity

question 23

Multiple Choice

If the auditor discovers that management intends to liquidate the entity:

• A)it is irrelevant if they did not intend to liquidate the entity at reporting date.
• B)it requires inclusion as a disclaimer of opinion.
• C)it requires inclusion as an 'except for' opinion.
• D)the going concern basis is inappropriate.

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Definitions:

Descartes

René Descartes was a French philosopher, mathematician, and scientist who is considered one of the key figures in the development of modern philosophy.

Galen

An ancient Greek physician and philosopher whose work in the field of medicine influenced the development of various medical theories for centuries.

Conformity

The process of aligning one's behaviors, beliefs, and attitudes with the norms or standards of a society or group.

Physiological

pertains to the functions and processes that occur within living organisms to sustain life, including biochemical and physical activities.