Auditing standards require that the auditor evaluate whether there is a substantial doubt about a client's ability to continue as a going concern for at least
A) one quarter beyond the balance sheet date.
B) one quarter beyond the date of the auditor's report.
C) one year beyond the balance sheet date.
D) one year beyond the date of the auditor's report.

Question

Quizplus · Accepted Answer

Auditing standards require that the auditor evaluate whether there is a substantial doubt about a client's ability to continue as a going concern for at least one year beyond the balance sheet date. This is because the financial statements provide information on the client's financial position as of the balance sheet date, but do not provide information about the client's ability to continue as a going concern beyond that date. Therefore, the auditor must evaluate whether there is a substantial doubt about the client's ability to continue as a going concern for at least one year beyond the balance sheet date.

Auditing Standards Require That the Auditor Evaluate Whether There Is