After Considering Management's Plans, an Auditor Concludes That There Is

question 64

Multiple Choice

After considering management's plans, an auditor concludes that there is substantial doubt about a client's ability to continue as a going concern for a reasonable period of time. The auditor's responsibility includes

• A)disclaiming an opinion on the financial statements due to the indications of possible financial difficulties.
• B)indicating to the client's audit committee whether management's plans for dealing with the adverse effects of the financial difficulties can be effectively implemented.
• C)considering the adequacy of disclosure about the client's possible inability to continue as a going concern.
• D)issuing a qualified or adverse opinion, depending upon materiality, due to the possible effects on the financial statements.

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Definitions:

Kitchen Appliances

Electrical or mechanical machines used in the kitchen for assisting with various food preparation tasks.

Workplace

A location or environment where people engage in physical or intellectual tasks to earn a livelihood; can vary from office settings to outdoor locations.

Work Ethic

A set of values based on the virtues of hard work and diligence, emphasizing the importance of responsibility, integrity, and perseverance in professional settings.

Outside the Home

Activities or work performed away from one's residence, often relating to employment or socialization in public or communal spaces.