The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time.What is considered to be a reasonable time period?
A)One year from the audit report date.
B)One year from the last day of field work.
C)One year from the balance sheet date.
D)Two years from the balance sheet date.

Question

Quizplus · Accepted Answer

The reasonable time period for evaluating the likelihood of a client continuing as a going concern is one year from the balance sheet date, as this is the date when the company's financial position and performance are reported. While the auditor may consider events or circumstances that occur after the balance sheet date, the assessment is primarily based on the conditions and events existing as of the balance sheet date. Therefore, option C is the most appropriate choice.

The Auditor Is Responsible for Evaluating the Likelihood of a Client