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. If the entity’s financial statements adequately disclose its financial difficulties, the auditor’s report is required to include an explanatory paragraph that specifically uses the phrase(s)

“Reasonable period of time, not to exceed 1 year” “Going concern”

a. Yes Yes

b. Yes No

c. No Yes

d. No No