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Going concern

  • 16-07-2009 2:13pm
    #1
    aintnosunshine
    Closed Accounts Posts: 47 ✭


    i was just wondering are auditors doing more in terms of the going concern decision now that the economy has gone belly up and more companies are at risk??

    Does issuing a non going concern decision lead to this whole self fulfilling prophecy that auditors are sealing the fate of certain companies


Comments

  • #2
    djdeclan
    Registered Users, Registered Users 2 Posts: 172 ✭✭djdeclan


    Yes and possibly yes, though its very rare that an auditor will issue a non-going concern audit report as this requires (i'm open to correction on this one) the accounts to be prepared on a break-up basis i.e. as if you are about to liquidate.
    In cases where there is a doubt about the ability of the company to continue as a going concern they will include an emphasis of matter paragraph emphasising a certain matter that could effect the ability of the company to continue as a going concern.
    The auditor could also issue a disclaimer of opinion.


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