Its for an essay I am struggling with.
2007-11-28 00:22:09 · 3 answers · asked by Anonymous in Business & Finance ➔ Corporations
In a recession, the auditor has to be extra careful when evaluating accounts receivable as the co. may incur bad debts if its customers go belly up. By the same token he has to be careful too with the investments, whether in subsidiaries, associates, joint-ventures or just equities in general, cos they may be impaired. Again, if the recession has affected the co's own sales, the auditor has to see if the inventory is still saleable, or whether the property plant and equipment are impaired (value in use assessment, etc). The overall consideration? Is the going concern assumption still appropriate.
2007-12-01 19:52:19 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
no affect whatsoever.... an audit is an audit regardless of the times
2007-11-28 08:25:33 · answer #2 · answered by wolfwagon2002 5 · 0⤊ 0⤋
What kind of audit?
2007-11-28 08:34:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋