L20 Notes_Part_4 - Internal Matters : loss of key...

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Going Concern Assessment AU 341 Does substantial doubt exist that the company will remain a going concern for one year after the balance sheet date? Assess extent of financial difficulty, ability to obtain capital, and assess management’s plans A. Conditions indicating that a potential going concern problem exists: Negative trends : recurring losses, W/C deficiencies, negative trends, adverse key ratios
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Unformatted text preview: Internal Matters : loss of key personnel, strikes poor accounting system, outdated facilities and single product External Events : strong competition, loss of a key customer, supplier, license, or patent, uninsured catastrophes (e.g., drought, earthquake, or flood), litigation, new legislation Other Indications : default on loan, arrearages in dividends, noncompliance with statutory requirements...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L20 Notes_Part_4 - Internal Matters : loss of key...

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