If Conclusion Is Drawn That There May Be a Going

question 162

Multiple Choice

If conclusion is drawn that there may be a going concern problem, which of the following should the auditor do?

• A) Withdraw from the engagement.
• B) Issue a qualified or adverse opinion.
• C) Identify and assess management's plan to overcome the problem.
• D) Communicate this fact with management that is one level above the controller.

---

Definitions:

Degree of Differentiation

The extent to which a product, service, or project is distinct and distinguishable from others in terms of features, quality, or performance.

Relationships Between Parts

The way in which components or elements of a system interact with each other to form a cohesive whole.

Degree of Complexity

A metric that quantifies the intricacy and difficulty of a project or system, often considering variables like size, diversity, and interdependencies.

Additive Rule

A principle in probability that states the total probability of the union of mutually exclusive events is equal to the sum of their individual probabilities.