When the Auditor Concludes That There Is Substantial Doubt About

question 126

Multiple Choice

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, the appropriate audit report could be: I.an unqualified opinion with an explanatory paragraph.
II) a disclaimer of opinion.

• A)I only
• B)II only
• C)I or II
• D)Neither I nor II

---

Definitions:

Psilocybin

A naturally occurring psychedelic compound produced by more than 200 species of mushrooms, known for its hallucinogenic effects.

Psychosis

A mental disorder characterized by a disconnection from reality, which may include delusions, hallucinations, and disordered thinking.

Alcohol

A chemical compound, specifically ethanol, which is found in drinks like beer, wine, and spirits, and can alter consciousness and impair cognitive and motor functions.

Cirrhosis

A chronic liver disease marked by degeneration of cells, inflammation, and fibrous thickening of tissue, often caused by alcoholism or hepatitis.