After Considering an Entity's Negative Trends and Financial Difficulties,an Auditor

question 34

Multiple Choice

After considering an entity's negative trends and financial difficulties,an auditor has substantial doubt about the entity's ability to continue as a going concern.The auditor's considerations relating to management's plans for dealing with the adverse effects of these conditions most likely would include management's plans to:

• A)Increase current dividend distributions.
• B)Reduce existing lines of credit.
• C)Increase ownership equity.
• D)Purchase assets formerly leased.

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The act of taking part in an activity or event.

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