The Auditors Have Determined That There Is Substantial Doubt About

question 11

Multiple Choice

The auditors have determined that there is substantial doubt about an entity's ability to continue as a going concern.When considering the appropriateness of management's disclosures and severity of the uncertainty,all of the following reports could be issued,except

• A) qualified opinion based on a material and pervasive uncertainty.
• B) unmodified opinion with an emphasis-of-matter paragraph describing the uncertainty.
• C) adverse opinion based on inadequate disclosure of the uncertainty.
• D) disclaimer of opinion based on a material and pervasive uncertainty.

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Definitions:

Taxpayers

Individuals or entities that are required to pay taxes to a government body, typically based on income, property value, or consumption.

Commercial Banks

Financial institutions that offer a wide range of services such as accepting deposits, providing loans, and other banking services to the public.

Welfare Banks

Financial institutions or programs that aim to support the economically disadvantaged segments of society, though it's not a widely used term and may refer to various initiatives in different contexts.

Check-Cashing Outlets

Financial service providers that offer clients the ability to cash checks for a fee without needing a bank account.