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Entity B is an Australian company that has its financial year end on 31 December 20X6. The auditor's report is dated 31 March 20x7. The
Entity B is an Australian company that has its financial year end on 31 December 20X6. The auditor's report is dated 31 March 20x7. The audited financials were tabled at the AGM and approved by the board on 20 April 20x7. The entity plans to liquidate on 2 February 20X8. According to relevant auditing standards, which of the following is most correct? The plans to liquidate is irrelevant as it is an event after the reporting period. O The financial statements should be prepared on a basis other than the going concern basis. Going concern considerations would be limited to the audited period ending 31 December 20X6. O As the matter is material to users' decisions, management need to consider mitigating factors that might serve to offset the conditions casting significant doubt on the going concern of the business
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