The CA Hub

CAF-8 · Chapter 10 · Question 9 of 10

What is the primary responsibility of the auditor regarding a company's 'Going Concern' status?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) To obtain sufficient appropriate audit evidence about the appropriateness of management's use of the going concern basis of accounting.

Explanation

ISA 570 requires the auditor to evaluate whether there is material uncertainty about the company's ability to continue as a going concern for at least 12 months.

All 10 questions in Chapter 10Substantive Procedures: Other Areas MCQs with answers

More Substantive Procedures: Other Areas MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →