When an Auditor of Financial Statements Has Substantial Doubt About

Multiple Choice

When an auditor of financial statements has substantial doubt about an entity's ability to continue as a going concern,the auditor most likely would express a qualified or adverse opinion if:

A) The effects of the adverse financial conditions are likely to be negative.
B) Information about the entity's ability to continue as a going concern is not disclosed in the financial statements.
C) Management has no plans to reduce or delay future expenditures.
D) Negative trends and recurring operating losses appear to be irreversible.