If the Auditor Concludes That There May Be a Going-Concern

question 72

Multiple Choice

If the auditor concludes that there may be a going-concern problem,which of the following should the auditor do?

• A)Withdraw from the engagement.
• B)Issue a qualified or adverse opinion.
• C)Identify and assess management's plan to overcome the problem.
• D)Communicate this fact with management that is one level above the controller.

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Definitions:

Ethical Problems

Involve dilemmas or situations that require a choice between competing sets of principles or standards, raising questions of right and wrong in human actions.

Organizational Change Activities

Actions and initiatives taken to modify processes, culture, or structure within an organization.

Artifacts

Tangible aspects or objects created by humans which represent elements of culture, including technology, artwork, and tools, in organizational research often related to the physical items that reflect company culture.

Tangible Objects

Physical items that can be seen, touched, and measured, as opposed to abstract concepts or virtual items.