Which of the following best describes auditors' responsibilities with respect to evaluating the going-concern status of the entity?
A)Auditors are required to specifically gather evidence with respect to going-concern status and separately report on the entity's ability to continue as a going concern.
B)Auditors are required to specifically gather evidence with respect to going-concern status and modify their report on the financial statements if substantial doubts exist.
C)Auditors are required to consider evidence obtained during the audit that may provide information with respect to going-concern status and separately report on the entity's ability to continue as a going concern.
D)Auditors are required to consider evidence obtained during the audit that may provide information with respect to going-concern status and modify their report on the financial statements if substantial doubts exist.

Question

Quizplus · Accepted Answer

Auditors are required to consider evidence obtained during the audit that may provide information with respect to going-concern status and modify their report on the financial statements if substantial doubts exist. This means that auditors do not have to specifically gather evidence on going-concern status, but they should keep an eye out for any warning signs that may suggest that the entity may not be able to continue as a going concern. If such doubts exist, the auditor's report should be modified to reflect this uncertainty.

Which of the Following Best Describes Auditors' Responsibilities with Respect