Question: For the purpose of assessing the going concern assumption it is

For the purpose of assessing the going-concern assumption, it is presumed that the auditor will consider whether the company will continue in existence for a “reasonable time” that does not exceed one year beyond the date of the financial statements.

Give reasons that auditors are not required considering the entity’s ability to continue as a going concern for a period longer than one year. In your opinion, is this one-year limitation reasonable? Explain and evaluate possible alternative approaches to support your opinion.

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  • CreatedJanuary 09, 2015
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