Posted: April 15th, 2016

What options does a business owner have when approached by an auditor, who has a friendly client auditor relationship between the two, wanting to discuss the issue of a going concern report and footnote disclosure on the financial reports when the business at hand has gone south for the past year in sales?

What options does a business owner have when approached by an auditor, who has a friendly client auditor relationship between the two, wanting to discuss the issue of a going concern report and footnote disclosure on the financial reports when the business at hand has gone south for the past year in sales?

How might a going concern explanatory paragraph be able to become a self fulfilling prophecy for a company?

What potential implications arise for the accounting firm if they issue and unqualified report without the going concern explanatory paragraph?

What is the importance of full and accurate auditor reporting to the public and possible consequences for both owner and auditor if the going concern explanatory paragraph and footnote are excluded?

How might a going concern report would be in the best interests of all parties involved?

How appropriate is it for an auditor to have a friendly auditor client relationship with a client?

What factors should motivate an auditor to be objective in his or her decision about a going concern report, despite personal concerns for his or her friend (the owner of the business)?

What should an owner do when the auditor feels that a going concern report is necessary, but the owner (the friend) feels that this report will cause the company to go belly up for sure even with the sales for the past year has gone south and no sight of recovery?