L20 Notes_Part_5 - Based on audit procedures designed and...

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Going Concern Assessment B. Mitigating factors reduce costs increase revenue obtain new financing restructure debt C. Effects on the financial statements disclosure if disclosures are inadequate -> qualified or adverse opinion D. Effects on the audit report Doubt about a going concern -> clean opinion Substantial doubt -> unqualified with explanatory paragraph Substantial doubt and accounting value are materially overstated relative to economic values -> disclaim an opinion?
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Going Concern Assessment
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Unformatted text preview: Based on audit procedures designed and performed to achieve other audit objectives, are there conditions and events indicating substantial doubt? YES NO Obtain managements plans Clean Opinion and assess likelihood of effectiveness Substantial Doubt Doubt no longer substantial Consider adequacy of Consider adequacy of disclosures Disclosures and add If adequate -> clean opinion An explanatory paragraph If disclosures are not adequate -> qualified or adverse...
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L20 Notes_Part_5 - Based on audit procedures designed and...

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