The going concern assumption _______.
A)is not the responsibility of the auditor, and should be left to management to determine
B)is a fundamental principle in the preparation of the financial statements
C)is the legal responsibility of the auditor
D)relates to the comparability and verifiability of a firm's financial statements

Question

Quizplus · Accepted Answer

The going concern assumption is a fundamental principle in the preparation of financial statements. It assumes that a company will continue to operate in the foreseeable future, allowing for the meaningful presentation of financial statements. It is the responsibility of management to assess the company's ability to continue as a going concern, but the auditor must also consider whether there is any uncertainty about the company's ability to continue operating.

The Going Concern Assumption _______