What Course of Action Should Auditors Take If, After Evaluating

question 43

Multiple Choice

What course of action should auditors take if, after evaluating management's plan to mitigate the effect of factors that suggest going-concern uncertainties, they believe that substantial doubt about going concern does not exist?

• A)Modify their report on the financial statements to describe management's plan to mitigate going-concern uncertainties, the procedures performed by the auditors, and indicate that substantial doubt about going concern does not exist.
• B)Prepare a separate report that describes management's plan to mitigate going-concern uncertainties, the procedures performed by the auditors, and indicate that substantial doubt about going concern does not exist.
• C)Require financial statement disclosure of management's plan to mitigate going-concern uncertainties with no modification to the auditors' report on the financial statements or no separate report on going concern.
• D)Conclude that substantial doubt about going concern does not exist and not require financial statement disclosure or modification of the auditors' report.

Calculate degrees of freedom and understand its impact on distributions.

Identify the distributions that can take on negative values.

Compute and interpret the mean, variance, and standard deviation for specific distributions.

Understand the skewness of statistical distributions and identify non-skewed distributions.

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Definitions:

Excessive Anxiety

A state of persistent and overwhelming worry and fear that is disproportionate to the actual source of stress in one's life.

Obsessive-Compulsive Disorder

A psychological condition marked by persistent, intrusive thoughts (obsessions) and unreasonable, strong desires to perform specific acts (compulsions).

Panic Attack

An episode of overwhelming anxiety, fear, or terror.

Major Phobic

Not a standard psychiatric term; may refer to severe phobic disorders, which are intense, irrational fears of specific objects or situations.