The Auditor Is Responsible for Evaluating the Likelihood of a Client

question 51

Multiple Choice

The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time.A reasonable period of time is which of the following?

• A)one year from the audit report date.
• B)one year from the last day of field work.
• C)one year from the balance sheet date.
• D)two years from the balance sheet date.

---

Definitions:

Primary Activity

In business, it refers to the core activities that are central to the operations of a company, directly related to the creation and delivery of its products or services.

Human Resource Management

The strategic approach to the effective management of people in a company or organization, aiming to help the business gain a competitive advantage.

Procurement

Involves the strategic acquisition of necessary goods and services for organizational operations, emphasizing cost-effectiveness and efficiency.

Substitute Products

Goods or services that can serve as replacements for each other; when the price of one goes up, the demand for the other might increase.