if lima rsquo s financial statements adequately disclose its financial difficulties 621691

Kane, CPA, concludes that there is substantial doubt about Lima Co.’s ability to continue as a going concern for a reasonable period of time. If Lima’s financial statements adequately disclose its financial difficulties, Kane’s auditor’s report is required to include a paragraph that specifically uses the phrase(s)

“Possible discontinuance of operations”

“Reasonable period of time, not to exceed 1 year”

Yes

Yes

Yes

No

No

Yes

No

No