If auditors determine there is substantial doubt about the entity continuing as a going concern, the next step is to obtain information about management's plans to mitigate or minimize the adverse effects of the situation.

Question

Quizplus · Accepted Answer

This is correct according to auditing standards. If auditors determine there is substantial doubt about the entity continuing as a going concern, they should obtain information about management's plans to mitigate or minimize the adverse effects of the situation. This information is important for the auditor to consider in evaluating the entity's ability to continue as a going concern.

If Auditors Determine There Is Substantial Doubt About the Entity