1. What is the auditor's responsibility when there is a substantial going concern issue?
Determining the adequacy of disclosure about the going concern issue
Issuing an adverse opinion due to the going concern effect on financial statements
Preparing a prospective financial statement to determine the company's ability to survive
Projecting market conditions after the balance sheet date to determine the effects on the company
2. Which of the following statements is omitted from nonpublic company audit reports?
An audit includes assessing the accounting principles used.
The audit was conducted in accordance with U.S. GAAP.
The auditors believe the audit provided a reasonable basis for their opinion.
The financial statements are the responsibility of company management.