Skip to main content

Commercial Pilot Licence (CPAER) – Canada · Question

During the planning phase of an audit, the auditor identifies a significant going concern risk for the client. How should this impact the auditor's approach?

Identifying a significant going concern risk requires the auditor to perform additional procedures, such as evaluating management’s plans and increasing the ext

Start free practice for Commercial Pilot Licence (CPAER) – Canada

150 questions · no signup required · 40 free questions per day

Start Practice →

Question: During the planning phase of an audit, the auditor identifies a significant going concern risk for the client. How should this impact the auditor's approach?

Answer options:

  • The auditor should immediately disclaim an opinion. ✅ The auditor should increase the extent of substantive procedures.
  • The auditor should reduce the reliance on internal controls.
  • The auditor should notify the regulatory body immediately.

Correct answer: The auditor should increase the extent of substantive procedures.

Explanation: Identifying a significant going concern risk requires the auditor to perform additional procedures, such as evaluating management’s plans and increasing the extent of substantive testing, to gather sufficient appropriate audit evidence, as per CAS 570.

Start free practice for Commercial Pilot Licence (CPAER) – Canada

150 questions · no signup required · 40 free questions per day

Start Practice →

More about Commercial Pilot Licence (CPAER) – Canada

Related Questions

More for Commercial Pilot Licence (CPAER) – Canada candidates

Ready to practice?

Free, no signup required. Build a wrong-question list as you go.

Start Free Commercial Pilot Licence (CPAER) – Canada Practice →

Related courses

Other Canadian certifications candidates often prepare for alongside this one.