If Auditors Identify Risk Factors That Indicate That the Going

question 24

Multiple Choice

If auditors identify risk factors that indicate that the going concern assumption is in doubt, they will

• A) undertake procedures to gather evidence regarding each risk factor.
• B) refuse to continue as the auditor of their client.
• C) report the client to the Canada Revenue Agency.
• D) reduce the extent of further audit testing that they undertake.

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Definitions:

Child Abuse

Deliberate action that is harmful to a child’s physical, emotional, or sexual well-being.

Retaliation

An action taken in return for an injury or offense.

Underreported

Situations or incidents that are not fully or accurately reported or disclosed, often resulting in a lack of awareness or understanding.

Substantiated Maltreatment

Confirmed incidents of abuse or neglect, verified by a protective services agency following an investigation.