Auditing standards (SAS No. 59) requires the auditor to evaluate whether there is a substantial doubt about a client's ability to continue as a going concern for at least:
A) one quarter beyond the balance sheet date.
B) one quarter beyond the date of the auditor's report.
C) one year beyond the balance sheet date.
D) one year beyond the date of the auditor's report.

Question

Quizplus · Accepted Answer

According to SAS No. 59, the auditor should evaluate whether there is a substantial doubt about the client's ability to continue as a going concern for at least one year beyond the balance sheet date. This is because financial statements are prepared on a going concern basis, assuming that the company will continue to operate for the foreseeable future. Therefore, if there is uncertainty about the company's ability to continue as a going concern for at least one year, this could have a significant impact on the financial statements and the auditor's report.

Auditing Standards (SAS No