Going concern issues may arise when:
A) Acquisitions or discontinued operations have recently occurred.
B) The accounting information systems have been modified.
C) The economy has negatively impacted the client company.
D) Changes in applicable accounting standards affect the client company.

Question

Quizplus · Accepted Answer

Going concern issues arise when there are doubts about a company's ability to continue its operations for the foreseeable future. Economic downturns that negatively impact a company can lead to financial difficulties, raising concerns about its viability as a going concern. Acquisitions, changes in accounting systems, or changes in accounting standards do not directly imply a company might not continue operating; they are more related to operational, compliance, or reporting aspects rather than the fundamental ability to remain in business.

Going Concern Issues May Arise When