Multiple Choice
When an auditor concludes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to
A) Prepare prospective financial information to verify whether management's plans can be effectively implemented.
B) Project future conditions and events for a period of time not to exceed one year following the date of the financial statements.
C) Issue a qualified or adverse opinion, depending upon materiality, because of the possible effects on the financial statements.
D) Consider the adequacy of disclosure about the entity's possible inability to continue as a going concern.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Changes that do not affect consistency are
Q34: When the auditor is unable to determine
Q35: All of the following are true with
Q37: An auditor would issue an adverse opinion
Q39: Which of the following circumstances should be
Q40: Changes in an entity's accounting choices either
Q41: When the audited financial statements of the
Q42: If the principal auditor decides to make
Q43: When the entity fails to include information
Q44: Cravens was asked to perform the first