If a Going-Concern Uncertainty Exists,auditors May Not Issue Which of the Following

question 11

Multiple Choice

If a going-concern uncertainty exists,auditors may not issue which of the following reports on the entity's financial statements?

• A) An unqualified opinion with an additional paragraph explaining the going-concern problem.
• B) An adverse opinion because of a pervasive departure from GAAP.
• C) A disclaimer of opinion resulting from an uncertainty about the ability of the entity to continue in existence.
• D) An opinion qualified for a GAAP departure if the auditors believe the disclosures about going-concern problems are inadequate.

---

Definitions:

Consumption Bundle

A set of goods or services that an individual or household consumes within a specific period.

Price of Spice

The specific cost associated with purchasing spice, which could vary based on market factors, quality, and availability.

Price of Whips

The cost at which whips are sold in the market, which can be influenced by factors like material costs and demand.

Price of Leather Jackets

The monetary value at which leather jackets are offered for sale in the market.