When an auditor of financial statements has substantial doubt about an entity's ability to continue as a going concern, the auditor most likely would express a qualified or adverse opinion if:

1. Management hasnoplans to reduce or delay future expenditures.
2. The effects of the adverse financial conditions are likely to be negative.
3. Information about the entity's ability to continue as a going concern isnotdisclosed in the financial statements.
4. Negative trends and recurring operating losses appear to be irreversible.