An Auditor Believes That There Is Substantial Doubt About an Entity's

Multiple Choice

An auditor believes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. In evaluating the entity's plans for dealing with the adverse effects of future conditions and events, the auditor most likely would consider, as a mitigating factor, the entity's plans to:

A) Repurchase the entity's stock at a price below its book value.
B) Issue stock options to key executives.
C) Lease rather than purchase operating facilities.
D) Accelerate the due date of an existing mortgage.