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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?    

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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.

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