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Auditors are required to evaluate the likelihood of each client continuing its operations for a reasonable period. This means the entity will not be forced
Auditors are required to evaluate the likelihood of each client continuing its operations for a reasonable period. This means the entity will not be forced to halt operations and liquidate its assets in the near term at what may be very low fire-sale prices. What are the financial indicators when an auditor should be alert about the possible discontinuation of the operations or possible liquidation of assets?
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