Question: Mead, CPA, had substantial doubt about Tech Co.s ability to continue as a going concern when reporting on Techs audited financial statements for the year

Mead, CPA, had substantial doubt about Tech Co.’s ability to continue as a going concern when reporting on Tech’s audited financial statements for the year ended June 30, 2009. That doubt has been removed in 2010. What is Mead’s reporting responsibility if Tech is presenting its financial statements for the year ended June 30, 2010, on a comparative basis with those of 2010?

a. The explanatory paragraph included in the 2010 auditor’s report should not be repeated.

b. The explanatory paragraph included in the 2010 auditor’s report should be repeated in its entirety.

c. A different explanatory paragraph describing Mead’s reasons for the removal of doubt should be included.

d. A different explanatory paragraph describing Tech’s plans for financial recovery should be included.

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