CPA audits – Concern about “going concern”

Description

Abstract: When auditing a company’s financial statements, CPAs must consider whether the “going concern” assumption in the reports is on target — and if the company is, indeed, expected to continue to operate in the year ahead. For a commercial banker granting loans, CPAs’ conclusions about businesses’ financial health can help identify companies at risk of loan default. This article describes what goes into making a going-concern assumption.