Going concern affects:
A) the scope of the audit.
B) the audit opinion.
C) the decision whether or not to accept a client.
D) All of the above.

Question

Quizplus · Accepted Answer

Going concern affects all three aspects mentioned in the options. It affects the scope of the audit as auditors need to assess whether or not there is a material uncertainty related to going concern that may require additional audit procedures. It affects the audit opinion as auditors need to determine whether or not a material uncertainty related to going concern exists and whether it needs to be disclosed in the financial statements. It also affects the decision whether or not to accept a client, as auditors need to evaluate the client's ability to continue as a going concern for a reasonable period of time.

Going Concern Affects