On What Information Does the Auditor Base a Going Concern

question 45

Multiple Choice

On what information does the auditor base a going concern evaluation?

• A)On separate procedures.
• B)On the management discussion and analysis (MD&A).
• C)On information obtained from normal audit procedures performed to test management's assertions.
• D)On the statement of cash flows for the current period.

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Definitions:

Nonhuman Animals

Living organisms that are not classified as human beings, including all species within the animal kingdom except Homo sapiens.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using knowledge, such as perception, memory, and reasoning.

Tacit Knowledge

Knowledge that is difficult to transfer to another person by writing it down or verbalizing it, often acquired through personal experience.

Contextual Intelligence

The ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed.