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:

Government's Country

The nation state represented and governed by a particular government.

Expatriates

Employees who are living and working in a country other than their home country, often for a certain period.

Global Corporation

A large business enterprise that operates and has assets in more than one country, often influencing global economics and politics.

Domestic Firm

A company that operates primarily within the borders of one country and focuses on the local market.