Going Concern. When an auditor finds the ability of a company to continue as a going concern

Question:

Going Concern. When an auditor finds the ability of a company to continue as a going concern is questionable, the auditor will use certain audit procedures to obtain further evidence. Jocques Entremont, Expert Comptable, the external auditor for Japonaiseries S.A., a company which retails Japanese art and woodcuts in Boulogne, France, suspects that there is a going concern problem.

Required:

A. List the procedures the auditor would perform.

B. Write the auditor’s opinion if disclosure of the problem is considered adequate.

C. Write the auditor’s opinion if adequate disclosure is not made.

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