“Going Concern” Review “AU Section 341; The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern”

Analyze the auditor’s responsibility to determine if a company can continue as a going concern. From your analysis, propose at least two (2) key factors that the auditor should consider when determining an entity’s ability to continue as a going concern. Provide a rationale to support your proposal.

From the article, analyze the inquiry letter sent by C.R. Brown. Next, determine at least one (1) omission that you believe occurred within the letter, and suggest one (1) way to improve the letter so that Consolidated’s outside attorney may corroborate the information in the case. Provide a rationale to support your response.