Essays Tagged: "Going concern"
Describe the general development of financial accounting regulation in the United Kingdom from 1970 to the present day.
n formulated loosely around the main principles of accounting, such as the prudence convention, the going concern convention, etc. This approach to accounting regulation did however leave the actual m ...
Subjects: Businesss Research Papers > Accounting
An Audit Analysis
y looking at the figure in the Draft Statement of Financial Position, this may increase the risk of going concern problems which will be discussed later. Being a high technology company, it may expose ... as expected, may never work or may be unreliable. Therefore, this exposed to a higher inherent risk.Going concern IssuesThe future viability of the company is at risk because there is no likelihood th ...
Subjects: Businesss Research Papers > Accounting
The fundamental accounting concepts and the role of financial accounting in aiding the decision making processes of four different non-management stakeholder groups.
eemed to be important (Oxford, 2002). The four fundamental accounting concepts can be identified as going concern, accruals, consistency, and prudence concept.As mentioned above, financial statements ... sible to evaluate the performance of the business or even compare it with one company's performance.Going concern concept:The first basic concept is going concern. This concept implies that the busine ...
Subjects: Businesss Research Papers > Accounting
Enron: An Analysis of Auditing Standards
s, the audit risk was extremely high for the company. In this paper, these issues will be examined: going-concern matters, related-party disclosures, subsequent discovery of facts, auditor independenc ... ecide whether those misstatements result in the financial statements to be materially misstated.The Going-Concern ConceptThe prediction of the going-concern concept is described as not more than one y ...
Subjects: Businesss Research Papers
Krispy Kreme Case Study
wing Krispy Kreme went from a company with huge potential and high expectations to one with serious going concern issues and a total lack of investor confidence. What happened was not due to any huge ...
Subjects: Businesss Research Papers > Case Studies
Accounting convention
ly arise. Greater emphasis is therefore, placed on expected losses than on expected profits.�Going concern convention:The going concern convention can be defined as is a term for a company that ... y that has the resources needed in order to continue to operate indefinitely. If a company is not a going concern, it means the company has gone bankrupt. In other words, this refers to a company's ab ...
Subjects: Businesss Research Papers > Accounting
Article Summary
e discretion with respect to the size of the accounting accruals;The discretion with respect to the going concern audit reports.ConclusionReputation protection (costs) overweighs the economic dependen ... er, reputation protection leads auditors to report conservatism. Big clients would love to accept a going concern audit report.Large client individually represents only at most 0.2% of the auditors' r ...
Subjects: Businesss Research Papers > Accounting