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

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. The entity's financial statements adequately disclose its financial difficulties. Under these circumstances, the auditor's report is required to include an explanatory paragraph that specifically uses the phrase(s) . $\begin{array}{lcc} & \text {"Except for the Effects}& \text {"Possible Discontinuance of the}\\ & \text {of Such Adjustments"}& \text {Entity's operations"}\\\end{array}$
A. $\begin{array}{lcc} &&&& \text { Yes } &&&&& &&&&&\text { Yes } \\\end{array}$
B. $\begin{array}{lcc} &&&& \text { Yes } &&&&&& &&&& \text { No } \\\end{array}$
C. $\begin{array}{lcc}&&&& \text { No } &&&&&& &&&& \text { Yes } \\\end{array}$
D. $\begin{array}{lcc} &&&& \text { No } &&&&&& &&&& \text { No }\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D

Correct Answer:

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