Why is the auditor concerned about the appropriateness of the going concern assumption?
A)It may motivate management to misstate the financial report.
B)The auditor needs to audit the solvency statement in the directors' declaration
C)It may affect the appropriateness of the financial report.
D)All of the given answers are correct.

Question

Quizplus · Accepted Answer

The auditor is concerned about the appropriateness of the going concern assumption because it can influence management's actions, potentially leading to misstatements in the financial report, and it directly affects the overall appropriateness of the financial report. Additionally, auditing the solvency statement in the directors' declaration, which is related to the going concern assumption, is a critical part of the auditor's responsibilities.

Why Is the Auditor Concerned About the Appropriateness of the Going