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.

---

Definitions:

Biological Sterilization Indicator

A device used to assess the effectiveness of sterilization processes, containing microbial spores that should be killed if the process is effective.

Quality Control Measure

Procedures and standards implemented to ensure that a product or service meets specific quality criteria and customer expectations.

Sterile

A condition of being free from all forms of microorganisms, ensuring an environment or object is completely clean and pathogen-free.

Pressurized Steam

Steam that has been compressed to a higher pressure than atmospheric pressure, often used for sterilization or power generation.