There has been a sharp increase in the emergence of financial technology firms (also known as FinTech
Question:
There has been a sharp increase in the emergence of financial technology firms (also known as FinTech firms) over the past few years. For example, in Australia where low-interest rates in 2021 contributed to a ten percent increase in the number of firms operating in the lending, mortgage, and buy-now-pay-later category within the sector. Most notably, firms like Afterpay and Zip. The emergence of these firms, associated with new business models, digitalization, and cost pressure, brings on new challenges for auditors.
Using knowledge to discuss:
In 2021, Zip reported a loss of $ 678,065,000 and the share price fell from $12.35 to $4.33 between June and December. Discuss how you would assess the going concern risk in relation to zipping.
Rubik:
Evaluates critically how the financial and market performance of the firm impacts the going concern assumption and provides insights as to why this is relevant to the auditor.
Understanding Basic Statistics
ISBN: 978-1111827021
6th edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase