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

question 99

Multiple Choice

If the auditor concludes that there may be a going-concern problem with the client,which of the following is the best course of action for the auditor to follow?

• A)Issue a qualified opinion.
• B)Identify and assess management's plan to overcome the situation.
• C)Chart the negative trends as an addendum to the audit report.
• D)Increase fees to cover the probable exposure.

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Definitions:

Gordon Allport

A psychologist who pioneered the study of personality, emphasizing the uniqueness of the individual and the importance of the current context for understanding behavior.

Measures

Quantitative or qualitative tools and methods used to evaluate, assess, or obtain data on various variables or phenomena.

Situation vs. Trait

Situation refers to the external environment that can influence behavior temporarily, while trait denotes enduring characteristics that influence behavior across different situations.