When an Auditor Has Concluded There Is Substantial Doubt About

question 19

Multiple Choice

When an auditor has concluded there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time beyond the current financial statement date (9/30/X1) , the auditor's responsibility includes:

• A) Preparing prospective financial information to verify whether management's plans can be effectively implemented.
• B) Projecting conditions and events from one year prior to this year's date (9/30/X0) to 9/30/X1.
• C) Issuing an adverse or negative assurance opinion, depending upon materiality, due to the possible effects on the financial statements.
• D) Considering the adequacy of disclosure about the entity's possible inability to continue as a going concern.

---

Definitions:

Damaged Ecosystem

An ecosystem that has been harmed or altered by environmental stresses, human activities, or natural disasters, leading to reduced biodiversity and ecological function.

Breeding Programs

Structured plans designed to manage the reproduction of organisms to achieve specific genetic and population goals.

Renewable Resources

Resources that can be replenished naturally over time, such as solar energy, wind, and biomass.

Nonrenewable Resources

Natural resources that cannot be replenished or replaced within a human lifespan, such as fossil fuels and minerals.