ACCOUNTING-According to auditing standards, what specific responsibilities
According to auditing standards, what specific responsibilities does the auditor have in
evaluating the client as a going concern? Be sure to cite the appropriate standard(s).Do
not quote the standard(s); use your own words.
Would you issue a going concern opinion to Mean Green Jeans? Why or why not?
Assume you decided to issue a going concern opinion and Mean Green Jeans was able to
thrive in 2015, erasing any concern about its financial health. Does this mean that the
going concern modification was the wrong opinion? Why or why not?
According to auditing standards: (a) Describe the difference between Type I and Type II
subsequent events. (b) What procedures should an auditor perform to identify and
evaluate subsequent events? Cite the appropriate standard(s) and describe the audit
procedures in your own words.
Will you accept Mean Green Jeans’ accounting for the loss of the account receivable?
Why or why not?