An Auditor Concludes That There Is Substantial Doubt About an Entity's

question 56

Multiple Choice

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the entity's financial statements adequately disclose its financial difficulties, the auditor's report is required to include an explanatory/emphasis-of-matter paragraph that specifically uses the phrase(s)

• A) "Reasonable period of time, not to exceed one year" and "going concern."
• B) "Reasonable period of time, not to exceed one year" but not "going concern."
• C) "Going concern" but not "reasonable period of time, not to exceed one year."
• D) Neither "going concern" nor "reasonable period of time, not to exceed one year."

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Definitions:

pH

A scale that measures how acidic or basic water-based solutions are, stretching from 0 to 14.

pH

A scale used to specify the acidity or basicity of an aqueous solution, ranging from 0 (most acidic) to 14 (most basic).

K

A symbol representing the element potassium, an essential dietary mineral and a highly reactive metal.

[HCO3-]

The chemical formula for bicarbonate, an anion that acts as a buffering agent in the blood to maintain acid-base balance.