Question: An auditor has substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time because of negative cash

An auditor has substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time because of negative cash flows and working capital deficiencies. Under these circumstances, the auditor would be most concerned about the:

control environmental factors that affect the organizational structure.
correlation of detection risk and inherent risk.
effectiveness of the entity's internal control activities.
possible effects on the entity's financial statements.

Step by Step Solution

3.47 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The correct answer is the last option which is Possible effects on the ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (2 attachments)

PDF file Icon

635df702597e5_180353.pdf

180 KBs PDF File

Word file Icon

635df702597e5_180353.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!