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

question 4

Multiple Choice

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

• 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:

Methane

A potent greenhouse gas with a molecular structure of one carbon atom and four hydrogen atoms, contributing significantly to global warming.

Ethane

a colorless, odorless hydrocarbon gas that is a constituent of natural gas and used as a petrochemical feedstock.

Propane

A flammable hydrocarbon gas of the alkane series, used as fuel in heating appliances, cooking equipment, and vehicles.

Liquefied Petroleum Gases

Flammable hydrocarbon gases including propane, butane, and mixtures of these gases, which are used as fuel in heating appliances, cooking equipment, and vehicles.