Lesson: Going Concern Issues

This lesson covers the assessment and evaluation of going concern issues in financial statements. It explains the importance of having a one-year assessment period for determining whether a company is going to stay in business. The lesson presents various procedures and indicators used to assess and identify going concern issues, such as analytical procedures, debt compliance, board minutes, legal counsel, financial support agreements, and subsequent events. It also delves into the indicators of financial difficulty, internal and external matters, and negative trends. Furthermore, the lesson discusses the process of including an emphasis-of-matter paragraph in the event of substantial doubt about the entity's ability to continue as a going concern.