“Going concern” concerns

Description

Abstract: CPAs reconsider the “going concern” assumption every time they audit financial statements. When the long-term viability of a borrower is doubtful, it may cause the CPA to issue a qualified audit opinion — or, worse, to withdraw from the job altogether. This article discusses the different types of audit opinions, which may have serious implications about a borrower’s ability to operate as a going concern. It also provides an update on FASB’s latest plans to reduce diversity in financial reporting about going concern issues.