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During the audit of Poindexter Corporation, the external auditors, Liberty CPA Firm have noted that the client's cash and cash equivalents balances are slowly decreasing.
During the audit of Poindexter Corporation, the external auditors, Liberty CPA Firm have noted that the client's cash and cash equivalents balances are slowly decreasing. As a result of this finding, what might the CPA Firm need to recommend to the audit client? The client should consider filing bankruptcy and liquidating the entity as a going concern. The client should think about acquiring a more profitable firm in the same industry in order to strengthen cash flow. The client may need to consider selling assets or issuing debt or equity in order to raise more capital. The client may need to consider purchasing assets or repurchasing debt/equity in order to raise more capital
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