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

question 56

Multiple Choice

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. If the entity's financial statements adequately disclose its financial difficulties, the auditor's report is required to include an explanatory/emphasis-of-matter paragraph that specifically uses the phrase(s)

• A) "Reasonable period of time, not to exceed one year" and "going concern."
• B) "Reasonable period of time, not to exceed one year" but not "going concern."
• C) "Going concern" but not "reasonable period of time, not to exceed one year."
• D) Neither "going concern" nor "reasonable period of time, not to exceed one year."

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Definitions:

American Society

A complex social system encompassing the diverse cultural, economic, political, and social structures within the United States.

Status Quo

The existing state of affairs at a particular time, especially concerning social or political issues.

Public Assistance

Government programs designed to provide financial aid to individuals or families in need, often targeting the poor, elderly, disabled, and unemployed.

New Deal

An assortment of programs, infrastructure projects, economic reforms, and policies put into action by President Franklin D. Roosevelt in the 1930s in the United States, designed to facilitate recovery from the Great Depression.