What are the effects of a going concern qualification?
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What is meant by the evaluation of a client's ability to continue as a going concern?
What are some situations that would require modification of the auditor's opinion related to going concern? What is the auditor's responsibility for assessing a client's ability to continue as a going concern?
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Solution Summary
The 200 word solution gives two examples of situations which might result in a going concern qualification by the auditors. The effects of such a report on a business are briefly discussed while stressing the possible actions that could be taken by stakeholders.
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A going concern qualification within an audit report says that the company is in serious jeopardy about continuing to be in business within the next year.
There are a number of situations where a going concern issue could arise. One example is that a company has sustained losses in recent years ...
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