An organization ' s financial statements indicate a note that the financial statements have been...

The going concern assumption means financial statements are prepared on the basis that the organization will continue operating for the foreseeable future and will not be forced to liquidate or significantly curtail operations. The note described in the question directly reflects this assumption. The monetary unit assumption means transactions are measured in a stable currency. The time period assumption means financial performance is reported over defined accounting periods. The economic entity assumption means the organization’s activities are separate from those of owners or other entities. Internal auditors reviewing financial reporting should understand going concern because it affects asset valuation, liability classification, disclosure, impairment analysis, and audit risk. Therefore, Option B is correct.