Question

What do you understand by assumption “going concern”. What auditors view on the company assumption of...

What do you understand by assumption “going concern”. What auditors view on the company assumption of going concern?    

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The assumption "going concern" is that a company or other entity will continue operating for a period of time that is enough to carry out the commitments, obligations, objectives and so on. In other words, the company will not be liquidate or be forced out of business in the foreseeable future. The auditor evaluates the ability of entity to continue as a going concern or a period not greater than one year following the date of the financial statements being audited.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When a private company is reporting under ASPE, and under the going concern assumption, the company...
When a private company is reporting under ASPE, and under the going concern assumption, the company will be reporting their equipment assets at original cost. net realizable value. original cost less accumulated depreciation. undepreciated capital cost.
How the going concern assumption affect the financial statements we prepared?
How the going concern assumption affect the financial statements we prepared?
Imagine you are the external auditor of Saudi Aramco, how do you interpret and what is...
Imagine you are the external auditor of Saudi Aramco, how do you interpret and what is your view on the “going concern” assumption on the financial stability of a business?
5. Consideration of going concern assumption underlying the financial statements preparation and presentation remains visibly an...
5. Consideration of going concern assumption underlying the financial statements preparation and presentation remains visibly an important task during the external audit. International Financial Reporting Standards (IFRS) require that financial statements are prepared on a going concern basis unless management intends to liquidate the entity or to cease operations or has no realistic alternative but to do so. When an entity does not prepare its financial statements on a going concern basis, IFRS requires disclosure of the basis used by...
2. Auditors should accept some of the blame when a company on which they have expressed...
2. Auditors should accept some of the blame when a company on which they have expressed an unmodified audit opinion subsequently fails, and they should also do more to highlight going concern problems being faced by a company. Discuss this statement.
What is your opinion about the going concern according to the report? Auditors' Report to the...
What is your opinion about the going concern according to the report? Auditors' Report to the sharehoders Scope of aduit: We have aduited the accompanying consolidated balance sheet of x industries corporation and its subsudaries (the "Group") as at 31 December 2016 and the related consoildated statments of income, cash flows and shareholders' equity forr the Group's management and have been prepared by them in accordance with the requirememtns of the regulations for companies and submitted to us together with...
what portion of the Constitution does the "plain view" doctrine concern? How that portion of the...
what portion of the Constitution does the "plain view" doctrine concern? How that portion of the Constitution affect public policy regarding criminal law?
what do you understand by game theory
what do you understand by game theory
Be honest. Write about your ageist thoughts. In what ways do you view elderly people in...
Be honest. Write about your ageist thoughts. In what ways do you view elderly people in general? Do you ever find yourself frustrated when you are behind them in line at the grocery store, or predicting someone who is driving poorly to be old? Do you think that ageism is a legitimate issue that needs to be addressed in society, or is it just a “politically correct” concern? How might such stereotyping affect those in late adulthood?
Presented below are the assumptions and principles discussed in this chapter. 1.Full disclosure principle 2.Going concern...
Presented below are the assumptions and principles discussed in this chapter. 1.Full disclosure principle 2.Going concern assumption 3.Monetary unit assumption 4.Periodicity assumption 5.Historical cost principle 6.Economic entity assumption Instructions Identify by number the accounting assumption or principle that is described below. Do not use a number more than once. ________(a)   Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) ________(b)   Indicates that personal and business recordkeeping should be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT