- 5 Marks
AA – Nov 2017 – L2 – Q3b – Audit and Assurance Risk Environment
Describe five financial events or conditions that may cast doubt on the going concern assumption of an organization.
Question
One of the basic assumptions underlying the preparation of financial statements is the going concern concept, which assumes that the entity has the ability to continue to operate into the foreseeable future. However, some events and conditions may cast doubt on the entity’s ability to continue as a going concern.
Required:
Describe five financial events or conditions that may cast doubt about the going concern assumption of an organization.
Find Related Questions by Tags, levels, etc.
- Tags: Audit Risk, Financial Events, Financial Statements, Going Concern
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Series: NOV 2017
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