If the auditor concludes that there may be a going concern problem,the auditor should do which of the following?
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 one level above the controller.

Question

Quizplus · Accepted Answer

If the auditor concludes that there may be a going concern problem, then the auditor should identify and assess management's plan to overcome the problem. This involves discussing the issue with management and evaluating the feasibility of their plan to address the issue. It is important to note that if the auditor determines that management's plan is not feasible or is not being implemented, then the auditor may need to issue a qualified or adverse opinion, or even consider withdrawing from the engagement. However, the first step is to evaluate management's plan before taking any further action.

If the Auditor Concludes That There May Be a Going