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.

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Definitions:

Natural Disasters

Catastrophic events caused by natural processes of the Earth, such as earthquakes, hurricanes, floods, and volcanic eruptions, leading to significant impacts on life and property.

Birth Rate

The statistical measure representing the number of live births per 1,000 people in a population over a specific period of time.

Death Rate

An indicator that quantifies the total deaths within a specific group, adjusted for its size, over a given period.

Grows Less Rapidly

Describes a slower rate of growth or development compared to the normal or expected speed.