Independent Auditors Must Consider Whether the Entity Has the Ability

question 41

Multiple Choice

Independent auditors must consider whether the entity has the ability to continue as a going concern.If a substantial doubt exists but disclosure is adequate and no other basis exists for modifying the report,the auditors would normally

• A) Disclaim an opinion.
• B) Express an adverse opinion.
• C) Qualify the opinion.
• D) Express an unqualified opinion with an additional paragraph describing the going-concern uncertainty.

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Definitions:

Non-audible Communication

Communication that occurs through means other than spoken words, such as body language, facial expressions, or written texts.

Facial Expressions

The movements of the facial muscles that convey emotional states, intentions, or social information to others.

Body Posture

The arrangement or position of the body and its parts, which can communicate nonverbal cues or physical well-being.

Eye Contact

The act of looking directly into another person's eyes, which can communicate various emotions or intentions, and is often considered a sign of confidence and honesty.