It is the responsibility of the auditor to obtain sufficient appropriate evidence to assess the validity of the going concern assumptions made by their client's management and those charged with the governance when preparing the financial reports.

Question

Quizplus · Accepted Answer

This statement is true as per the auditing standards. The going concern assumption is a fundamental accounting principle, and the auditor must evaluate the adequacy of evidence to support it. The auditor must consider the available evidence, including projections and forecasted financial information, and scrutinize any events or conditions that could indicate substantial doubt about the client's ability to continue as a going concern.

It Is the Responsibility of the Auditor to Obtain Sufficient