If there is substantial doubt about the entity's ability to continue as a going concern, the auditor should obtain information about the management's plans to mitigate the problem and assess the likelihood that such plans can be implemented.

Question

Quizplus · Accepted Answer

This statement is true. According to the auditing standards, if the auditor has doubts about an entity's ability to continue as a going concern, they should obtain information about management's plans to address the issue and evaluate the likelihood that such plans can be executed. This helps the auditor to determine whether the going concern assumption is still appropriate for the financial statements.

If There Is Substantial Doubt About the Entity's Ability to Continue