Responsibility for evaluating the going concern assumption in accordance with the applicable financial reporting framework rests with _______.
A)the auditor
B)management
C)the internal audit function
D)the clients legal counsel

Question

Quizplus · Accepted Answer

The responsibility for evaluating the going concern assumption rests with management, as they are responsible for the entity's operations and are in the best position to assess the entity's ability to continue as a going concern. However, the auditor also has a responsibility to evaluate the going concern assumption as part of their audit procedures. The internal audit function and the client's legal counsel are not typically involved in the evaluation of the going concern assumption.

Responsibility for Evaluating the Going Concern Assumption in Accordance with the Applicable