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School
University of Miami**We aren't endorsed by this school
Course
ACC 402
Subject
Accounting
Date
Dec 17, 2024
Pages
1
Uploaded by MegaExploration15849
4. The client’s “going concern™ status is an audit reporting issuc that is addressed at the conclusion of the audit. AU Section 341 requires the auditor to assess whether the clhient is likely to continue existence for a reasonable period of ime afier the date of the financial i statements. Indicate reasons why the auditor should also address the company 's stage of the audit going concern status in the planning AU Section 341 describes the auditor’s responsibilitics for evaluating the client’s ™ ent’s “going concemn’ status. Read AU Section 341 (available on the AICPA or PCAOB web sites) and then answer the following questions: a. If the auditor believes there is substantial doubt about the client’s abslity to contmue as a going concern, what actions should the audinor take? [n this assignment, you performed analvtical procedures involving vanous financial ratios and trends m order to assess the client’s ability to continue as 3 gomng concern. Describe some other types of procedures the auditor could perform that may identify conditions and cvents indicating there could be substantial doubt about a chent’s ability to continue as a going concem - Assignment TWO ¢ Page 9
