Accounting · Auditing - Going Concern Responsibilities
Which of the following statements summarize the auditors' responsibilities in relation to going concern? 1. Evaluate management's assessment of the entity's ability to continue as a going concern. 2. Determine whether or not an entity can prepare its financial statements using the going concern basis of accounting. 3. Remain alert throughout the audit for events or conditions which may cast significant doubt on the entity's ability to continue as a going concern. 4. Obtain evidence to determine whether a material uncertainty exists if events are identified which may cast doubt on the entity's ability to continue as a going concern.
- 11, 2, 3 and 4
- 22 and 3 only
- 31, 2 and 4 only
- 41, 3 and 4 only✓
Correct answer
1, 3 and 4 only
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