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:

Gaining Commitment

Gaining commitment refers to the process of securing an agreement or decision from a customer or client to move forward with a purchase or action.

Excellent Service

The provision of outstanding and superior service that exceeds customer expectations.

Mental Toughness

The ability to remain resilient and consistently perform towards one’s personal goals despite challenges, pressure, or failure.

Physical Stamina

The ability of the body to sustain prolonged physical activity without becoming overly tired.