You are the auditor of GOGO Ltd. For year ended December 31,  20×6. The summarized financial statements for year ended Dec. 31, 20×6 are: The audit report is required by April 20, 20×7. You are concerned with the continuous losses and deteriorating liquidity position. The management has stated that the situation is expected to be reversed by…

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EXAMPLES OF INDICATIONS WHERE GOING CONCERN ASSUMPTIONS MAY NOT BE APPROPRIATE It is recognized that a business generally does not cease to continue without prior indications. The seriousness of such indication may vary depending upon the circumstances. The possible indications include: a) Excess of liabilities over current assets or excess of excess of current liabilities over current assets. b)…

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