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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
- 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. Jaboob, Shanfari, the external auditor for Omani Roots LLC, a company which retails Omani art and handicrafts in USA, suspects that there is a going concern problem.
Required: Briefly explain the effects of the above situation on the auditors report if:
- Going concern issues are disclosed in the financial statements.
- Going concern issues are not disclosed in the financial statements
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