When an Auditor of a Nonpublic Company Has Concluded There

question 29

Multiple Choice

When an auditor of a nonpublic company has concluded there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time beyond the date the financial statements will be released (1/26/X2) ,the auditor's responsibility includes:

• A)Preparing prospective financial information to verify whether management's plans can be effectively implemented.
• B)Projecting conditions and events from one year prior to this year's date (12/31/X0)to 12/31/X1.
• C)Issuing an adverse or negative assurance opinion,depending upon materiality,due to the possible effects on the financial statements.
• D)Considering the adequacy of disclosure about the entity's possible inability to continue as a going concern.

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Definitions:

Borderline Personality Disorder

Syndrome characterized by rapidly shifting and unstable mood, self-concept, and interpersonal relationships, as well as impulsive behavior and transient dissociative states.

Interpersonal Relationships

Emotional, social connections or bonds between people that may vary in intensity and intimacy.

Mental Disorder

A syndrome characterized by clinically significant disturbance in an individual's cognition, emotion regulation, or behavior that reflects a dysfunction in the psychological, biological, or developmental processes underlying mental functioning.

Hypersensitivity

An exaggerated response by the immune system to a substance it recognizes as foreign, which can manifest in allergies or sensitivities.