The Auditor Is Responsible for Evaluating the Likelihood of a Client

question 34

Multiple Choice

The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time.What is considered to be a reasonable time period?

• A)One year from the audit report date.
• B)One year from the last day of field work.
• C)One year from the balance sheet date.
• D)Two years from the balance sheet date.

---

Definitions:

A Band

Length of the myosin myofilament in a sarcomere.

H Zone

Area in the center of the A band in which there are no actin myofilaments; contains only myosin.

I Band

A region within the sarcomere of skeletal and cardiac muscles identified by its light appearance under a microscope, consisting mainly of actin filaments.

Neuromuscular Junction

The synapse or junction where a motor neuron transmits a signal to a muscle fiber, causing it to contract.