Financial Statements Are Usually Prepared on the Going Concern Basis

question 13

Multiple Choice

Financial statements are usually prepared on the going concern basis. The auditor is required by ASA 570 (ISA 570) to assess the risk of going concern problems at which stage of the audit?

• A) ASA 570 (ISA 570) does not require the assessment of the risk of going concern problems, this is left to the directors
• B) during the final review.
• C) the planning stage.
• D) the planning stage and again during the final review.

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Definitions:

Chytridiomycota

A phylum of fungi known for their motile spores, implicated in global amphibian declines due to a disease they cause.

Ascomycota

A division of fungi characterized by the formation of spores in a sac-like structure called an ascus.

Aquatic

Pertaining to water; living in or relating to water bodies, either freshwater or marine environments.

Endomycorrhizal Fungi

These are fungi that form symbiotic relationships with the roots of plants, improving nutrient and water absorption, and are characterized by penetrating the cell walls of root cells.