A basic assumption of accounting theory is that the going-concern assumption is true. If the auditor assesses

Question:

A basic assumption of accounting theory is that the going-concern assumption is true. If the auditor assesses that there is a 20% chance the auditee will fail, what should the auditor do? If the auditor assesses a range of risks of failure 0–40%, what should the auditor do? When are quantitative assessments better than qualitative assessments using words? Discuss.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Auditing An International Approach

ISBN: 978-1259087462

7th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

Question Posted: