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.

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Definitions:

Physiological Needs

Basic human needs for survival and physical well-being, such as food, water, shelter, and sleep, posited as foundational in Maslow's hierarchy of needs.

Psychological Deficiencies

Lack or impairment in cognitive, emotional, or behavioral functioning that affects an individual's psychological well-being.

Social Deficiencies

Refers to the lack of social skills or abilities that prevents individuals from interacting effectively within a society or certain social situations.

Physiological Deficiencies

Lack or shortage in the body of essential nutrients or substances required for normal biological functioning.