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

question 40

Short Answer

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.The entity's financial statements adequately disclose its financial difficulties.Under these circumstances,the auditor's report is required to include an emphasis-of-matter paragraph that specifically uses the phrase(s) $$\begin{array} { l c c } &&\text { "Possible }\\&\text { "Except for the effects } & \text { discontiruarce of the } \\&\text { of such adjustrnerts" } & \text { ertity's operations" } \\\\\text { A } & \text { Yes } & \text { Yes } \\\text { B. } & \text { Yes } & \text { No } \\\text { C. } & \text { No } & \text { Yes } \\\text { D. } & \text { No } & \text { No }\end{array}$$

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Definitions:

SaleDate Field

A specific column in a database or spreadsheet designated for recording dates of sales transactions.

Split Form

In database applications, a view that displays data in two sections simultaneously — one part showing a single record and the other a list or summary.

Upper Half

This term can refer to the top portion of a given space or entity, often used in various contexts to denote the area or component that is above the midpoint.

Datasheet

A table or spreadsheet displaying data on various parameters, often used in software applications for data entry or presentation.