If an Auditor Has Serious Going Concern Issues Regarding the Client

question 53

Multiple Choice

If an auditor has serious going concern issues regarding the client, but the financial statements are correctly stated, then the auditor should:

• A) issue an adverse opinion.
• B) issue a disclaimer of opinion.
• C) issue an unqualified opinion with appropriate explanatory language.
• D) perform analytical procedures of the adjusted financial statements.

---

Definitions:

Hardiness

Is an individual difference that allows some individuals to experience less stress when dealing with stressful events and that makes them more effective in dealing with the stress they do experience.

Experienced Stress

denotes the psychological or emotional strain and tension that results from adverse or demanding circumstances, often affecting individuals' mental and physical health.

Stressful Events

Situations or occurrences that cause tension, anxiety, or strain to an individual.

Information Technology

The use of electronic equipment and software to store, retrieve, transmit, and manipulate data, usually in the context of business or enterprise.