Fraudulent manipulation of the going concern assumption usually results from an organization trying to conceal its terminal business situation.

Question

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Fraudulent manipulation of the going concern assumption is often an attempt to hide an organization's financial difficulties, allowing it to appear as if it is not at risk of bankruptcy or closure. This is done in order to deceive stakeholders such as investors, creditors, and employees, and may involve providing false or misleading information about the organization's financial condition. Such manipulation is illegal and unethical, and can result in significant financial losses for those who have been deceived.

Fraudulent Manipulation of the Going Concern Assumption Usually Results from an Organization