The Financial Report of Charger Ltd Indicates That There Are

question 32

Multiple Choice

The financial report of Charger Ltd indicates that there are going concern problems.After considering additional audit evidence, the auditor concludes that the client will not continue as a going concern during the next year.What type of audit opinion should the auditor express?

• A)Disclaimer of opinion.
• B)Qualified opinion.
• C)Adverse opinion.
• D)Unmodified opinion with a Material Uncertainty Related to Going Concern paragraph.

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Definitions:

Recessions

Economic downturns marked by decreasing industrial production, employment, and sales, often lasting from a few months to more than a year.

Frictional Unemployment

The short-term unemployment that arises from the process of workers moving between jobs or into the labor market.

Voluntary Quits

The act of employees leaving their job out of their own volition, often indicative of a strong job market or better opportunities elsewhere.

Job Seekers

Individuals actively looking for employment or exploring the job market.