The auditor will often look at how the entity is growing in order to determine_______.

Question

Quizplus · Accepted Answer

The auditor will need to understand the assets needed to support a growing entity in order to assess the entity's financial position and risks. This information can also impact the auditor's understanding of the entity's future cash flows and potential financial performance. The likelihood of being paid for the audit, as well as decisions about which assets the client should keep or sell, are not typically considered by the auditor when evaluating growth.

The Auditor Will Often Look at How the Entity Is