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| An auditor believes there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. In evaluating the entity’s plans for dealing with the adverse effects of future conditions and events, the auditor most likely would consider, as a mitigating factor, the entity’s plans to A. Pay cash dividends that are in arrears to the preferred stockholders. B. Purchase production facilities currently being leased from a third party. C. Increase the useful lives of plant assets for depreciation purposes. D. Postpone expenditures to upgrade its information technology system. |