On What Information Does the Auditor Base a Going Concern

question 45

Multiple Choice

On what information does the auditor base a going concern evaluation?

• A)On separate procedures.
• B)On the management discussion and analysis (MD&A).
• C)On information obtained from normal audit procedures performed to test management's assertions.
• D)On the statement of cash flows for the current period.

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Definitions:

Notify Seller

The act of informing the seller about a relevant event, decision, or action, often as required by the terms of a contract or agreement.

Defective Goods

refers to products that are flawed and do not meet the quality or safety standards expected, potentially causing harm or not performing as intended.

Reasonable Time

A legally acceptable period of time that is fair and appropriate under the circumstances for performing a particular act or obligation.

Sport Goggles

Protective eyewear designed specifically for use during sports activities to safeguard the eyes from injury.