Auditing & Assurance Services 6th Edition by Timothy Louwers

تمرين 526

Many companies believe that a going-concern opinion is a self-fulfilling prophecy (that is, when a company receives a going-concern opinion, customers will not purchase products with warranties, suppliers will not provide short-term credit, and investors and creditors will not invest or loan). Would GM's going-concern opinion influence your decisions regarding either purchasing a car from GM or investing in GM's stock? Is a going-concern a self-fulfilling prophecy?