Which of the Following Statements Is Not True with Respect

question 27

Multiple Choice

Which of the following statements is not true with respect to the auditors' evaluation of going-concern uncertainties?

• A) Auditors are required to gather specific evidence to assess going-concern uncertainties.
• B) If management's plans to mitigate going-concern uncertainties reduces the risk to a low level, auditors are not required to revise their opinion on the entity's financial statements.
• C) Auditors are required to document the conditions or events that suggested going-concern uncertainties.
• D) Auditors are required to evaluate the ability of an entity to continue in existence for up to one year beyond the date of the financial statements being audited.

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Definitions:

Rational

The characteristic of an individual or decision that is based on logic and aimed at achieving maximum utility.

Maximize Utility

The economic theory or objective of achieving the highest level of satisfaction possible with available resources.

Borda Count

A voting method in which voters rank candidates or options, and points are assigned based on the position in which each option is ranked, used to determine a consensus winner.

Independence of Irrelevant Alternatives

A principle in decision theory stating that the preference between two options should not change because of the introduction of new alternatives.