💰 CPA Exam Prep

What is a "going concern" qualification?

A The company is growing
B There is substantial doubt about the entitys ability to continue operating
C The audit firm is closing
D The company has high revenues

✓ Correct Answer: Option B

A going concern modification indicates the auditor doubts whether the entity can continue operations for at least 12 months.

💡 Why is B) the correct answer?

The correct answer to the question "What is a "going concern" qualification?" is Option B: There is substantial doubt about the entitys ability to continue operating.

The other options — A) The company is growing, C) The audit firm is closing, D) The company has high revenues — are incorrect for this CPA Exam Prep question. As explained above: A going concern modification indicates the auditor doubts whether the entity can continue operations for at least 12 months.

📚 About This CPA Exam Prep Practice Question

This 3-level CPA Exam Prep question from the Auditing & Attestation (AUD) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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