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.

---

Definitions:

Random Error

Variability in measurement or data that arises by chance and cannot be attributed to a specific cause, affecting the accuracy of results.

Social Psychology

The scientific study of how individuals think, influence, and relate to each other within a societal context.

Unanswered Questions

Queries or doubts that have not yet received an explanation or solution.

Good Theory

A set of principles, models, or explanations that effectively organizes knowledge and predicts phenomena accurately, often characterized by simplicity, broad applicability, and the ability to be tested.