Auditing - What is Going Concern

The video explains the concept of 'going concern,' which refers to a company's ability to continue operations for a reasonable period, typically one year. Auditors assess evidence to determine if a company may cease to be a going concern. If such evidence is found, they discuss it with management and evaluate management's plans to address the issue. If substantial doubt remains, auditors must report it in their audit report. In severe cases, a disclaimer of opinion may be issued, though this is rare.

What is the definition of going concern in the context of an organization?

What steps must auditors take if they find evidence suggesting a company may cease to be a going concern?

What factors do auditors consider when assessing whether a company has a going concern issue?

What is the significance of including a going concern section in an audit report?

Under what circumstances might an auditor issue a disclaimer of opinion regarding going concern?