Audit Report Dean Turner is the partner on the audit team for a new client, Coastal Companies (CC), a public company. The client hired Deans firm in August 2022 in preparation for the December 31, 2022, audit. Deans firm is replacing the predecessor firm that audited CC for the last 12 years. Since January 2022, CC has experienced a slowdown in sales as evidenced by lower inventory turnover ratios. Slower inventory turnover has negatively impacted operating cash flow, which has resulted in CC paying some of its suppliers late. Some of the smaller suppliers are demanding that CC pay cash on delivery of inventory items. Dean is also aware of correspondence between CC and its bank that the company started having cash flow problems as far back as 2021. CC has attempted to obtain short-term financing from its bank but has not been successful. CCs management has adequately disclosed these issues in the 2022 financial statements. Based on the audit evidence, CCs financial statements are presented fairly in accordance with the financial reporting framework, but Dean has concluded that CC has a substantial going concern issue.

Required

Prepare the appropriate audit report for Coastal Companies.

Assume that 1. An audit of ICFR has also been completed and an unqualified opinion is being issued.

2. Assume that there are not Critical Audit Matters to report