Which of the Following Factors Is Not Relevant When Management

question 32

Multiple Choice

Which of the following factors is not relevant when management is assessing the going concern assumption?

• A)The nature and condition of the entity's business
• B)Whether the auditor specialises in the client's industry
• C)The time into the future that an event is likely to take place
• D)The size and complexity of the entity

---

Definitions:

Permanent Shortage

Permanent Shortage refers to a situation where the demand for a good or service persistently exceeds its supply, often due to structural issues within the market or supply chain.

Temporary Shortage

A situation where the demand for a product or service exceeds its supply in a short-term period.

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready to buy at a particular price point.

Quantity Supplied

The quantity of a commodity that producers are willing and able to sell at a particular price over a specified period of time.