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?
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 ...
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.