CAS 570 - Going Concern,requires that the auditor evaluate management's assessment of the ability of the entity to continue as a going concern based on
A)inquiry with management.
B)the opinion of the legal counsel of the company.
C)the liquidity and solvency ratios of the firm.
D)the evidence collected throughout the audit.

Question

Quizplus · Accepted Answer

CAS 570 requires the auditor to evaluate management's assessment of the entity's ability to continue as a going concern based on the evidence collected throughout the audit. This includes assessing the adequacy of the entity's disclosures about its ability to continue as a going concern, considering any uncertainties related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern, and evaluating the viability of any management plans to mitigate those uncertainties. Therefore, option D is the best choice. Options A, B, and C are not sufficient alone to assess the management’s assessment of the entity’s ability to continue as a going concern.

CAS 570 - Going Concern,requires That the Auditor Evaluate Management's