Question: 5. After considering managements plans, an auditor concludes that there is substantial doubt about a clients ability to continue as a going concern for a

5. After considering management’s plans, an auditor concludes that there is substantial doubt about a client’s ability to continue as a going concern for a reasonable period of time. The auditor’s responsibility includes

a. Disclaiming an opinion on the financial statements due to the indications of possible financial difficulties.

b. Indicating to the client’s audit committee whether management’s plans for dealing with the adverse effects of the financial difficulties can be effectively implemented.

c. Considering the adequacy of disclosure about the client’s possible inability to continue as a going concern.

d. Issuing a qualified or adverse opinion, depending upon materiality, due to the possible effects on the financial statements.

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