If the Auditor Concludes That There May Be a Going-Concern

question 99

Multiple Choice

If the auditor concludes that there may be a going-concern problem with the client,which of the following is the best course of action for the auditor to follow?

• A)Issue a qualified opinion.
• B)Identify and assess management's plan to overcome the situation.
• C)Chart the negative trends as an addendum to the audit report.
• D)Increase fees to cover the probable exposure.

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Definitions:

Low Incomes

Earnings that fall below the average or median income level within a given region or economy.

In-Kind Benefits

Non-cash compensation or assistance provided to individuals, such as food stamps or housing assistance, often aimed at meeting basic needs.

Lack Of Education

The state of being deprived of the knowledge, skills, and attitudes needed to achieve personal and societal development.

Proficiency In English

The ability to use the English language skillfully, including reading, writing, listening, and speaking, often measured through standardized tests or certifications.