Final answer:
Auditors generally assess a client's ability to continue as a going concern during the planning stage of the audit.
Step-by-step explanation:
Auditors generally assess a client's ability to continue as a going concern during the audit process. This assessment is typically performed at the planning stage of the audit, where auditors evaluate the client's financial statements, management's plans, and other relevant information. The objective is to determine if there are any indications or risks that the client may not be able to continue operating for the foreseeable future.
For example, auditors may evaluate if the client has a history of losses, significant debts, or if there are any negative trends in the industry. They may also consider the impact of significant events like lawsuits or changes in regulations. If auditors have concerns about the client's ability to continue as a going concern, they may include a note in the financial statements to disclose these risks to the users.