Independent Auditors Must Consider Whether the Entity Has the Ability

question 10

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 unmodified opinion with an emphasis-of-matter paragraph describing the going-concern uncertainty.

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Definitions:

Clusters

Groups or gatherings of similar items, individuals, or activities located close to one another or categorized together due to shared characteristics.

Environmental Risks

Potential dangers or hazards from the natural or built environment that can affect individual or public health, safety, and well-being.

American Society

The social structure, cultural practices, and institutions found within the United States.

Normal Accidents

Those that occur inevitably though unpredictably due to the very complexity of modern technologies.