If the auditor concludes that there may be a going-concern problem,which of the following should the auditor do?
A)Withdraw from the engagement.
B)Issue a qualified or adverse opinion.
C)Identify and assess management's plan to overcome the problem.
D)Communicate this fact with management that is one level above the controller.

Question

Quizplus · Accepted Answer

If the auditor concludes that there may be a going-concern problem, the auditor must identify and assess management's plan to overcome the problem. This will allow the auditor to determine whether the going-concern assumption is still appropriate and whether further auditing procedures need to be performed. The auditor may also communicate this fact with management that is one level above the controller, but this is not the best choice on its own. The auditor may withdraw from the engagement or issue a qualified or adverse opinion only if management does not have a feasible plan to overcome the problem.

If the Auditor Concludes That There May Be a Going-Concern