When an Auditor Concludes There Is Substantial Doubt About a Continuing

question 1028

Multiple Choice

When an auditor concludes there is substantial doubt about a continuing audit client's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to:

• A) Issue a qualified or adverse opinion, depending upon materiality, due to the possible effects on the financial statements.
• B) Consider the adequacy of disclosure about the client's possible inability to continue as a going concern.
• C) Report to the client's audit committee that management's accounting estimates may need to be adjusted.
• D) Reissue the prior year's auditor's report and add an explanatory paragraph that specifically refers to "substantial doubt" and "going concern."

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