The task of assessing the companys ability to continue as a going concern is the responsibility of A. the external auditor. B. management. C. the internal auditor. D. the audit committee.

Which of the following is not an example of a mitigating factor that reduces the risk that the going concern assumption may be in doubt? A. a letter of guarantee from a parent company B. significant rapid increase in competition C. the ability to sell an unprofitable segment of the business D. the ability to raise additional funds via borrowings

Claudia Martel knows that financial reporting fraud transactions require disclosure. However, she is not sure whether related party transactions require disclosure. You advise her that related party transactions require A. disclosure. B. auditor judgment. C. disclosure only if there is risk of fraud. D. no disclosure.

In assessing the client's relationship with its employees, the auditor will consider A. all of the above B. the level of unionization among the workforce. C. the attitude of staff to their employer. D. how well a client pays its employees.

When gaining an understanding of a client, the auditor will consider the risks associated with information technology. Risks associated with information technology include A. unauthorized access to computers, software, or data. B. errors in programs. C. lack of back-up procedures. D. all of the above Mathias Mousseau was at a clients offices and was preparing his work for the following day. He was considering the risk that a material misstatement due to significant error or fraud could occur in the client's financial statements.

Which of the three main stages of the audit was he performing? A. risk response phase B. none of the above C. risk assessment phase D. reporting phase

If auditors identify risk factors that indicate that the going concern assumption is in doubt, they will A. refuse to continue as the auditor of their client. B. reduce the extent of further audit testing that they undertake. C. undertake procedures to gather evidence regarding each risk factor. D. report the client to the Canada Revenue Agency.

The going concern assumption is made when it is believed that A. a company is a separate legal entity. B. a company will become insolvent within the next accounting period. C. a company will remain in business for the foreseeable future. D. the board of directors does not believe the company's financial statements are fairly presented

The auditor is concerned about the audit client's closing procedures to ensure A. transactions and events have been recorded in the correct accounting period. B. closing procedures have been correctly applied. C. the financial statements accurately reflect the results of the audit clients closing procedures. D. all of the above