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:

Fair Debt Collection Practices Act

A federal law that limits the behavior and actions of third-party debt collectors attempting to collect debts on behalf of another person or entity.

Debt Collector

An individual or company that collects debts owed by consumers, often on behalf of a creditor.

Civil Penalty

A financial penalty imposed by a government agency as punishment for violating a civil law or regulation, distinct from criminal penalties.

Cease-and-Desist Order

A legal order issued by a government authority or court directing a person or entity to stop an illegal or questionable activity immediately.