No one will be willing to loan us any money. The case was inspired by discussions with Craig Isom, a former audit partner, and we gratefully acknowledge his contribution to its development. This situation was awkward because Mark and George were friends.
Second, if the going concern issue is not resolved to the satisfaction of Mark then he should ask George to give a note in the financial statements that discloses the matters that Surfer dude duds inc doubts about the going concern assumption.
Whether it will be a qualified opinion or an adverse opinion will depend on the results of additional procedures carried out by Mark to examine the evidence relating to going concern assumptions.
We just need a little more time. It would be unethical to issue an unqualified report without the going concern report. In your opinion, what should Mark do? This is because every audit report must consist of the reasons for the unqualified report.
Surfer Dude Duds is a fictitious company. What potential implications arise for the accounting firm if they issue an unqualified report without the going-concern explanatory paragraph? How might Mark convince George that a going-concern report is in the best interests of all parties involved?
How might Mark convince George that a going-concern report is in the best interests of all parties involved? In my opinion, there is no doubt that Mark should include the going concern explanatory paragraph in his audit report.
This is because the audit report acts as an ideal way of getting to know the financial status of the company. Surfer Dude will go belly-up for sure. As you well know, the retail clothing market has really gone south the past few months.
We always manage to come out on top. Mark rehearsed what he was going to say several times, but he remained uneasy about the task before him. It is the responsibility of the organization to provide full and correct information to the auditor which in turn helps the auditor to prepare correct report.
George was sprawled out in a large executive chair, with his ever-present smile. Mark always marveled at how a person could invariably seem so relaxed and happy. He enjoyed a strong client relationship with George Baldwin, who was ordinarily a relaxed and easygoing man, now going on 50 years of age.
If you would like to purchase this solution, you can pay via the PayPal link below, the solution will be available immediately after the payment is made. Mark can help George realize that George can take this as a challenge to turn his company around.
If the company does not provide the correct accounts, it will be held liable. However George has his own apprehensions which prevent him from giving in to Mark. First, he can demand from George that he disclose plans of how he will continue the company for more than a year.Case Surfer Dude Duds, Inc.: Considering the Going-Concern Assumption ultimedescente.com are Mark's options?
Mark has several options first; he can demand that George disclose the plans about how the company is going to continue for the next year.
These plans need to be disclosed in the financial statements. Next, if the going concern issue is not 96%(26). The solution for the Surfer Dude Duds Inc.
accounting (audit) case study answers the 7 questions below. If you would like to purchase this solution, you can pay via the PayPal link below, the solution will be available immediately after the payment is made. He had scheduled a P.M.
meeting with George "Hang-ten" Baldwin, chief executive officer of Surfer Dude Duds, Inc. Surfer Dude specialized in selling clothing and accessories popularized by the California "surfer" culture.
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To contact our Customer Support, please call us at () TOYS (). Case Surfer Dude Duds, Inc.: Considering the Going-Concern Assumption 1. What are Mark’s options? In this scenario, Mark has two options.
One would be to issue a going-concern report and the other option is to be persuaded by George and not issue a going-concern report. If Mark decides to issue the going-concern report he will have to 92%(13).Download