An audit strategy will focus on going concern issues for a client company operating in an industry which has experienced a recent market downturn.

Question

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When a company operates in an industry that has recently experienced a market downturn, there is a heightened risk of going concern issues, which refers to the company's ability to continue operations in the near future. Therefore, the audit strategy should focus on assessing the company's ability to continue as a going concern.

An Audit Strategy Will Focus on Going Concern Issues for a Client