alleryStart learning →Under UK and Irish standards, an entity is a going concern unless management does what?
APays out a dividend
BIntends to liquidate or stop
CChanges its policies
DAppoints a new auditor
Answer & Solution
Correct answer: B. Intends to liquidate or stop
Management intending to liquidate or cease trading, or having no realistic alternative, ends the assumption.
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Related questions
Does a going concern emphasis of matter necessarily mean imminent insolvency?Which item would an auditor weigh when judging doubt about going concern?For how long must an auditor test going concern ability after the audited statement date?The going concern principle allows a company to defer which items to future periods?How does the value of a going concern compare with its breakup value?The going concern basis is presumed unless what is imminent?When liquidation of an entity becomes imminent, which basis is used for its statements?Going concern statements assume the entity will do what?