If Substantial Doubt Remains About Going Concern for a Client

question 54

Multiple Choice

If substantial doubt remains about going concern for a client at the end of the audit,then the auditor would do which of the following?

• A)issue an unqualified audit report.
• B)issue an unqualified audit report with an explanatory paragraph.
• C)issue a qualified report.
• D)issue an adverse report.

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Definitions:

Rationalize

The process of eliminating radicals from the denominator of a fraction or complex numbers from the denominator.

Denominator

The lower segment of a fraction representing the number of parts into which the total is split.

Rationalize

A method in mathematics used to eliminate the radical (such as a square root) from the denominator of a fraction.

Numerator

The top number in a fraction that indicates how many parts of a whole are being considered.