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What does the phrase

What does the phrase

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 4 4.1. What does the phrase "the financial statements are presented on the going concern basis" mean and. briefly explain why the auditor is interested in the going concern ability of a company? 4.2. What is the auditor's responsibility with regards to the basis of preparation, where management has used the going concern assumption in the preparation of the financial statements? 4.3. When evaluating the adoption of the going concern basis presentation, should the auditor consider both "aggravating" factors and "mitigating" factors? Explain. 4.4. Differentiate factual insolvency and commercial insolvency? 4.5. Describe eight procedures which the auditor may carry out when evaluating the going concern ability of a company?
Transcribed Image Text:QUESTION 4 4.1. What does the phrase "the financial statements are presented on the going concern basis" mean and. briefly explain why the auditor is interested in the going concern ability of a company? 4.2. What is the auditor's responsibility with regards to the basis of preparation, where management has used the going concern assumption in the preparation of the financial statements? 4.3. When evaluating the adoption of the going concern basis presentation, should the auditor consider both "aggravating" factors and "mitigating" factors? Explain. 4.4. Differentiate factual insolvency and commercial insolvency? 4.5. Describe eight procedures which the auditor may carry out when evaluating the going concern ability of a company?
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