ASA 570 Requires the Auditor to Evaluate Whether There Is

question 16

Multiple Choice

ASA 570 requires the auditor to evaluate whether there is a substantial doubt about a client's ability to continue as a going concern.One of the most important types of evidence to assess the going concern question is:

• A) analytical procedures.
• B) inquiries of the client and its legal counsel.
• C) confirmations of creditors.
• D) statistical sampling procedures.

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Definitions:

Evaluate Progress

The process of assessing the advancement or development towards achieving a specific goal, objective, or standard.

Psychological Testing

The use of standardized tests to measure an individual's mental and/or emotional functioning.

Ethical Standards

Guidelines or principles designed to govern behavior and conduct, particularly in professional settings, to ensure fairness, integrity, and respect.

Legal Standards

Established principles and criteria in law that guide judicial rulings and the enforcement of laws.