If the auditor concludes that the client may have a going-concern problem then the auditor should identify and assess management's plans to overcome this problem.

Question

Quizplus · Accepted Answer

This is true. According to auditing standards, if the auditor has concerns about the client's ability to continue operations as a going concern, they should assess management's plans to address the issue. This includes evaluating the feasibility of the plans, the likelihood of their success, and whether they will be implemented in a timely manner. The auditor should disclose any significant uncertainties related to the client's ability to continue as a going concern in the audit report if appropriate.

If the Auditor Concludes That the Client May Have a Going-Concern