Question

1. Substantial doubt about the entity's ability to continue as a going concern is measured as one year from:

	The client's year-end.
	The date the financial statements are issued.
	The date the financial statements are available to be issued.
	The date the financial statements are issued or the date the financial statements are available to be issued.

2. The going concern issue should be evaluated for all:

	Annual financial statements.
	Annual and quarterly financial statements.
	Annual and interim financial statements.
	Annual financial statements reflecting a net loss on the income statement.

3. Examples of adverse conditions and events include:

	Negative financial trends.
	Default on loans.
	Loss of a key franchise, license or patent
	All of the above.

4. Examples of plans that management may implement to mitigate conditions and events that raise substantial doubt about an entity's ability to continue as a going concern include:

	Plans to dispose of an asset or business.
	Plans to borrow money or restructure debt.
	Plans to increase bonuses to top management executives.
	Both a. and b. above.

5. If substantial doubt about an entity's ability to continue as a going concern is alleviated after consideration of management's plans, the financial statements should include:

	A more favorable emphasis-of-matter paragraph with footnote disclosure concerning the conditions and events and management's plans.
	Only footnote disclosure concerning the conditions and events and management's plans.
	Neither an emphasis-of-matter paragraph nor footnote disclosure concerning the conditions and events and management's plans.
	None of the above.

6. The absence of any reference to substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time in an auditor's report:

	Can be viewed as a guarantee of the entity's ability to continue as a going concern for a reasonable period of time.
	Cannot be viewed as a guarantee of the entity's ability to continue as a going concern for a reasonable period of time.
	Can be viewed as a guarantee of the entity's ability to continue as a going concern for a reasonable period of time in high-technology industries only.
	None of the above.

Answer 1

1.Substantial doubt about the entity's ability to continue as a going concern is measured as one year from:

Answer: The date the financial statements are issued or the date the financial statements are available to be issued.(When applicable)

2.The going concern issue should be evaluated for all:

Answer: Annual financial statements.

3.Examples of adverse conditions and events include:

Answer:All of the above.(Negative financial trends,Default on loans,Loss of a key franchise, license or patent.)

4.Examples of plans that management may implement to mitigate conditions and events that raise substantial doubt about an entity's ability to continue as a going concern include:

Answer: Plans to dispose of an asset or business.

5. If substantial doubt about an entity's ability to continue as a going concern is alleviated after consideration of management's plans, the financial statements should include:

Answer: A more favorable emphasis-of-matter paragraph with footnote disclosure concerning the conditions and events and management's plans.

6.The absence of any reference to substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time in an auditor's report:

Answer: can be viewed as a guarantee of the entity's ability to continue as a going concern for a reasonable period of time.