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:

Phrenic

Relating to the diaphragm, especially a nerve that originates in the neck and passes down between the lung and heart to reach the diaphragm.

Thoracic Plexus

A network of nerves in the thoracic region of the body that is involved in controlling the chest muscles and sensory perception in the thoracic area.

Spinal Plexuses

Networks of interlinked nerves originating from the spinal cord, which supply sensation and motor control to various parts of the body.

Subarachnoid Space

The area between the arachnoid mater and pia mater surrounding the brain and spinal cord, filled with cerebrospinal fluid.