Which of the following must an auditor consider when there is substantial doubt about going concern?

When there is substantial doubt about an entity's ability to continue as a going concern, it is essential for the auditor to thoroughly evaluate management's plans for addressing the underlying conditions that contribute to this doubt. This consideration is critical because management’s response to financial distress or uncertainty can provide insights into the likelihood of the organization’s ability to continue its operations over the next twelve months.

By assessing management's plans, the auditor can determine whether these strategies are realistic and feasible given the current circumstances. This may involve evaluating proposed actions, such as operational improvements, cost saving initiatives, restructuring efforts, or obtaining additional financing. If management has well-articulated and achievable plans, it may diminish the auditor's concerns regarding the entity's ability to continue as a going concern.

Other factors, such as management's prior performance reviews or engagement with external auditors, may provide context or background information, but they do not directly address the immediate issues related to going concern. Similarly, management's internal control systems are important for understanding operational effectiveness, but they do not specifically focus on resolving the underlying conditions affecting the going concern assessment. Thus, the auditor's focus on management's actionable plans is crucial in forming their opinion on the entity's ability to sustain its operations.