When the Auditor Concludes That There Is Substantial Doubt About

question 40

Multiple Choice

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, and this has been adequately disclosed in the financial statements, the appropriate audit report is:

• A) an adverse opinion with an emphasis of matter section.
• B) a qualified opinion with an emphasis of matter section.
• C) an unmodified opinion with no emphasis of matter section.
• D) an unmodified opinion with an emphasis of matter section.

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Definitions:

Market

A venue or system where buyers and sellers interact to trade goods, services, or financial instruments.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Support Department

Units within an organization that provide essential services or support to the primary operations departments but do not directly participate in production activities.

Purchase Requisitions

Documents used within organizations to officially request the purchase of goods or services, usually for approval before a purchase order is issued.