Auditing Standards (SAS No. 59) requires auditors to evaluate whether there is a substantial doubt about a client's ability to continue as a going concern. One of the most important audit procedures to perform to assess the going concern question is:
A) analytical procedures.
B) confirmations of creditors.
C) statistical sampling procedures.
D) inquiries of client and its legal counsel.

Question

Quizplus · Accepted Answer

Analytical procedures help auditors identify trends and unusual relationships that may indicate financial difficulties, which are crucial in assessing a client's ability to continue as a going concern.