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9 Pages • Essays / Projects • Year: Pre-2021
This report addresses the following items for the group assignment: 1. What guidance does APES 110 Code of Ethics for Professional Accountants to assist in this situation? 2. What is meant by the concept of ‘going concern’ in an audit? What are the auditor’s responsibilities in regard to going concern of clients? How should a going concern problem alter the standard (unmodified) audit report? 3. Analyse what the potential legal liability implications might be of (1) sharing and (2) not sharing the going concern information about Fancy Furniture Manufacturing with Eucawood Lumber Supply and Norbert Harvey. 4. Advise Alex, the engagement partner of Fancy Furniture Manufacturing, what actions you believe he should take, based on the knowledge of the going concern problems. Should the partner inform Eucawood Lumber Supply and/or Norbert Harvey of the going concern problem? Are there alternative actions available?
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