Mini- Case: Going- Concern Reporting. Refer to the mini- case GM: Running on Empty on page C11 and respond to questions 1, 2, and 3.

Mini- Case: Going- Concern Reporting. Refer to the mini- case “GM: Running on Empty” on page C11 and respond to questions 1, 2, and 3.

On page C11

1. Reviewing GM’s financial information in GM Exhibit 1 and its stock price in GM Exhibit 2 , when do you first see signs of GM’s impending financial distress?

2. In referencing professional standards, what factors should auditors consider in evaluating potential going- concern uncertainties?

3. Considering your response to questions 1 and 2, do you believe that the going- concern uncertainty was warranted? Do you believe that Deloitte & Touche should have issued a going- concern opinion prior to 2008?

4. What economic factors existing in the United States during 2008 might have accelerated Deloitte & Touche’s decision to issue an audit opinion modified to disclose going- concern uncertainties?

GM EXHIBIT 1

GM EXHIBIT2

$60.00 $50,000 $40.00 $30.00 $20.00 $10.00 $0.00 Close High Low 2003 2004 2005 2006 2007 2008