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The Auditor of Kennedy Ltd Has Serious Doubts That the Entity

question 42

Multiple Choice

The auditor of Kennedy Ltd has serious doubts that the entity will continue as a going concern.There is adequate disclosure of this significant uncertainty in the notes to the financial report.The uncertainty is the result of a single factor affecting the client.What type of audit opinion should the auditor express?


Definitions:

Line Voltage

The voltage measured across two phases in a polyphase system, typically higher than the voltage of any single phase.

Three-Phase Voltages

Voltages derived from a three-phase power system, characterized by three alternating currents that differ in phase by one-third of a cycle.

Out Of Phase

The condition in which two components do not reach their positive or negative peaks at the same time.

Three-Phase Connection

A type of electrical connection typically used for power transmission that involves three alternating currents of the same frequency, each 120 degrees out of phase with the others.

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