When an Auditor Has Substantial Doubt About an Entity's Ability

When an auditor has substantial doubt about an entity's ability to continue as a going concern because of the probable discontinuance of operations, the auditor most likely would express a qualified opinion if:

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

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