The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time.A reasonable period of time is which of the following?
A)one year from the audit report date.
B)one year from the last day of field work.
C)one year from the balance sheet date.
D)two years from the balance sheet date.

Question

Quizplus · Accepted Answer

According to auditing standards, a reasonable period of time for evaluating the likelihood of a client continuing as a going concern is one year from the balance sheet date. This is because the balance sheet date is a significant reference point for assessing the financial health of the company. Therefore, choice C is the best answer.

The Auditor Is Responsible for Evaluating the Likelihood of a Client