If the Auditor Concludes That There May Be a Going

question 67

Multiple Choice

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

• A)withdraw from the engagement.
• B)issue a qualified or adverse opinion.
• C)identify and assess management's plan to overcome the problem.
• D)communicate this fact with management one level above the controller.

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Definitions:

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, which aims to protect union members' rights and promote democracy within labor organizations.

Pure Monopsonist

A market condition where there is only one buyer for a product or service, giving this buyer significant control over the market.

Market Equilibrium Wage

The market equilibrium wage is the rate of compensation for labor where the quantity of labor supplied by workers matches the quantity of labor demanded by employers, resulting in no excess supply or demand in the job market.

Industrial Union

A method of labor union organization in which workers from a specific industry are unified into a single union, irrespective of their individual skills or trades.