The auditor must consider whether it is appropriate to assume that the client will remain as a going concern: (a) because this means that assets are valued on the basis that they will continue to be used for the purposes of conducting business. (b) only if the client is facing bankruptcy, and long-term debt is likely to be withdrawn. (c)

Chapter 3, Multiple Choice Questions #7

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The auditor must consider whether it is appropriate to assume that the client will remain as a going concern: 

(a) because this means that assets are valued on the basis that they will continue to be used for the purposes of conducting business. 

(b) only if the client is facing bankruptcy, and long-term debt is likely to be withdrawn. 

(c) only if the client is listed on a stock exchange. 

(d) because mitigating circumstances are not important.

Related Book For answer-question

Auditing A Practical Approach

2nd Canadian edition

Authors: Fiona Campbell, Robyn Moroney, Jane Hamilton, Valerie Warren

ISBN: 978-1118849415