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When the Auditor Concludes That There Is Substantial Doubt About

question 167

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 unmodified opinion audit report with an explanatory paragraph.
II) a disclaimer of opinion.


Definitions:

Internal Factor

Elements or forces within an individual, such as personal skills, emotions, or beliefs, that influence their actions or decisions.

Pollyanna Principle

A tendency for people to remember pleasant items more accurately than unpleasant ones.

Pleasant Stimuli

stimuli that are enjoyable or satisfying to experience, often invoking a positive emotional response.

Primacy Effect

The tendency to remember and give more importance to the first pieces of information encountered about something or someone.

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