RE: 41 days & squeaky bum time1 Feb 2025 18:30
Welsh falcon
Why do you and other rampers spread such rubbish to support your hysterical fervour for Avacta?
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In the UK, auditors are required to assess whether a company is a "going concern" when signing off on its financial statements. The term "going concern" refers to the assumption that a company will continue its operations for the foreseeable future, without the intention or necessity of liquidation or ceasing trading.
INVESTOPEDIA.COM
The auditing standard governing this assessment is ISA (UK) 570, issued by the Financial Reporting Council (FRC). This standard mandates that auditors evaluate management's use of the going concern assumption in preparing financial statements and determine whether any material uncertainties exist that could cast significant doubt on the entity's ability to continue as a going concern.
FRC.ORG.UK
Auditors are expected to:
Critically assess the company's financial health, including cash flows, debt levels, and profitability.
Consider external factors such as market conditions, economic trends, and regulatory changes that might impact the company's operations.
Evaluate management's plans to address potential financial difficulties and their feasibility.
If auditors identify material uncertainties related to the company's ability to continue as a going concern, these must be disclosed in the financial statements. Such disclosures inform stakeholders of potential risks regarding the company's future viability.
ICAEW.COM
In summary, auditors in the UK must be satisfied that a company is a going concern when approving its financial statements. This involves a thorough evaluation of both internal financial metrics and external factors to ensure the company's continued operational viability.
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