During Preliminary Audit Planning

question 40

Multiple Choice

During preliminary audit planning:

• A) the auditor considers the possibility of business failure.
• B) the auditor designs the audit to search for evidence to support the company's continued existence.
• C) the auditor does not need to consider the possibility of business failure because that is a procedure performed during the overall evaluation at the end of the audit.
• D) the auditor inquires of the company's legal advisers concerning the possibility of going concern problems.