If Substantial Doubt Remains About Going Concern for a Client

question 29

Multiple Choice

If substantial doubt remains about going concern for a client at the end of the audit,then which of the following reports should the auditor typically issue?

• A)Issue an unqualified audit report.
• B)Issue an unqualified audit report with an explanatory paragraph.
• C)Issue a qualified report.
• D)Issue an adverse report.

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Definitions:

Engineering

The application of scientific, mathematical, and empirical principles to design, create, and analyze structures, machines, systems, or processes.

First-In, First-Out

An accounting method where the first units produced or acquired are the first ones to be sold or used.

Process Costing

An accounting methodology used to allocate production costs to individual units of output when the products are indistinguishable from each other.

Work in Process

Items or products that are in the stage of production but have not yet been completed or sold.