An Auditor Concludes That There Is Substantial Doubt About an Entity's

question 43

Multiple Choice

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the entity's financial statements adequately disclose its financial difficulties, the auditor's report is required to include an explanatory/emphasis-of-matter paragraph that specifically uses the phrase(s) :

• A)"reasonable period of time, not to exceed one year" and "going concern."
• B)"reasonable period of time, not to exceed one year" but not "going concern."
• C)"going concern" but not "reasonable period of time, not to exceed one year."
• D)neither "going concern" nor "reasonable period of time, not to exceed one year."

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Definitions:

Window

An opening in a wall or structure, typically filled with glass, that lets light and air into the space and allows occupants to see out.

Opening

An initial part or opportunity in various contexts, such as in an argument, a job, or an anatomical structure.

Aseptic Technique

A set of practices and procedures performed under sterile conditions to prevent contamination and infection.

Contamination

The presence of an unwanted substance or microorganism which makes something impure or hazardous.