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When an Auditor Concludes There Is Substantial Doubt About an Entity's

Question 40

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,due to 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 and draw attention to the issue in the audit report.

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