ACCA AA · Chapter 12 · Question 5 of 9
Under ISA 570, if management's assessment of going concern covers less than a particular period, the auditor should ask management to extend it. What is that period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Twelve months from the date of the financial statements
Explanation
ISA 570 requires the auditor to request that management extend its assessment if it covers less than twelve months from the date of the financial statements, consistent with IAS 1. Some jurisdictions require longer periods, but the ISA reference point is twelve months from the reporting date.
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