Auditors are required to evaluate the going concern assumption as part of each audit.

Question

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Auditors are required by auditing standards to evaluate the company's ability to continue operating as a going concern for at least one year from the date of the financial statements. This assessment is important for ensuring that the financial statements fairly present the financial position, results of operations, and cash flows of the company. If the auditor determines that there is substantial doubt about the company's ability to continue as a going concern, this must be disclosed in the auditor's report.

Auditors Are Required to Evaluate the Going Concern Assumption as Part