Auditing standards require auditors to evaluate whether there is substantial doubt about a client's ability to continue as a going concern. One of the most important audit procedures to perform to assess the going concern question is
A) analytical procedures.
B) confirmations from creditors.
C) statistical sampling procedures.
D) tests of internal controls.

Question

Quizplus · Accepted Answer

Analytical procedures involve the analysis of financial statements, ratios, and trends to identify unusual transactions or events, and inconsistencies that may indicate financial difficulties. This helps auditors assess the risk of the entity not continuing as a going concern.

Auditing Standards Require Auditors to Evaluate Whether There Is Substantial