The Auditor Is Responsible for Evaluating the Likelihood of a Client

question 25

Multiple Choice

The auditor is responsible for evaluating the likelihood of a client not being a going concern for the next 12 months. What basis will the auditor use to assess this issue?

• A)Management integrity.
• B)Control environment.
• C)Absolute assurance.
• D)Substantial doubt.

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Definitions:

Nocioception

The sensory nervous system's process of encoding and processing harmful, potentially damaging stimuli.

Sense of Pain

The sensation and perception of discomfort or physical distress.

Temperature Changes

Variations in the degree of heat present in a substance or object, often affecting its state or properties.

Location Processing

The cognitive ability to understand, remember, and interpret spatial relationships in one's environment.