Auditing 1 Case Analysis 1
Auditing 1 Case Analysis
Name
Course
Professor’s Name
Location of Institution
Date
, Auditing 1 Case Analysis 2
Auditing 1 Case Analysis
Part 1: Going Concern
Generally, the going concern theory assumes that everybody’s business will continue
forever. According to this concept, owners of the company should never close the business.
Therefore, if this firm needs to end its operations, it must have a disclosure requirement.
Based on the provided circumstance, Sister B&C has a new quality control manager. As a
result, it creates a quality control process, reducing defective merchandise’s returns.
However, most PS owners and Sister B&C are putting its products in various additional home
improvement chains. This initiative bolsters PS’s sales, improving profit margins. In reviving
itself, this firm must do lots of hard work from such type of circumstance. The company also
strives to get financial assistance from HVAC. In this case, the corporation will improve its
products’ quality; thus, clearing its dues. These efforts might assist this firm in reviving,
maintaining the going concern attitude.
The fundamental standard of governing an audit entails auditors remaining sincere,
straightforward, and honest in their technique of expert work. Every auditor should stay fair
and never appear to be free from any interest. Generally, the emphasis of matter paragraph
entails auditors reporting an issue disclosed in the financial statements appropriately. There
are various instances where the EOM paragraph may get included in the auditor’s report. For
example, a major catastrophe with a substantial impact on the entity’s financial position. The
paragraph can also be incorporated if there is any uncertainty associated with upcoming
exceptional litigation results. According to the auditing principles, every auditor must include
the emphasis of matter paragraph. This situation occurs since it acts as a reference to the
matter highlighted. The section is also a perfect reference to relevant disclosures, explaining
the issue found in financial statements. The auditor further incorporates additional matter
Auditing 1 Case Analysis
Name
Course
Professor’s Name
Location of Institution
Date
, Auditing 1 Case Analysis 2
Auditing 1 Case Analysis
Part 1: Going Concern
Generally, the going concern theory assumes that everybody’s business will continue
forever. According to this concept, owners of the company should never close the business.
Therefore, if this firm needs to end its operations, it must have a disclosure requirement.
Based on the provided circumstance, Sister B&C has a new quality control manager. As a
result, it creates a quality control process, reducing defective merchandise’s returns.
However, most PS owners and Sister B&C are putting its products in various additional home
improvement chains. This initiative bolsters PS’s sales, improving profit margins. In reviving
itself, this firm must do lots of hard work from such type of circumstance. The company also
strives to get financial assistance from HVAC. In this case, the corporation will improve its
products’ quality; thus, clearing its dues. These efforts might assist this firm in reviving,
maintaining the going concern attitude.
The fundamental standard of governing an audit entails auditors remaining sincere,
straightforward, and honest in their technique of expert work. Every auditor should stay fair
and never appear to be free from any interest. Generally, the emphasis of matter paragraph
entails auditors reporting an issue disclosed in the financial statements appropriately. There
are various instances where the EOM paragraph may get included in the auditor’s report. For
example, a major catastrophe with a substantial impact on the entity’s financial position. The
paragraph can also be incorporated if there is any uncertainty associated with upcoming
exceptional litigation results. According to the auditing principles, every auditor must include
the emphasis of matter paragraph. This situation occurs since it acts as a reference to the
matter highlighted. The section is also a perfect reference to relevant disclosures, explaining
the issue found in financial statements. The auditor further incorporates additional matter
