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:

Assessment

The process of evaluating or measuring a specific factor or factors, often used in contexts like health, education, or project management.

Fire Extinguisher

A safety device used to extinguish or control small fires in emergency situations.

Long-Term Care Facility

An institution that provides medical, personal, and sometimes daily living support to individuals with serious or persistent health issues or ageing-related needs.

Type A

A personality type characterized by competitiveness, urgency, aggression, and a higher stress level, often linked to a higher risk of heart disease.