Case Study On The Assessment Of Going-Concern Ability Of Company Q By H CPA Firm

As the speed of business change has been accelerating,the company's gong-concern ability has gradually attracted the attention of all sectors of society.And the academic research on this subject is also getting deeper and deeper.However,the current research is mainly based on the perspective of crisis prediction of going-concern ability.Most of the research is based on the analysis of the financial indicators of the enterprise.The contents are relatively single and no unified assessment framework of going-concern ability has been formed.And in related researches,there are many theoretical and empirical studies,and few case studies.Based on CPA perspective,this paper firstly sorts out the current auditing standards and application guidelines.Then analyzes the driving factors of going-concern ability and constructs an assessmentframework from the perspectives of industry status,business quality,financial quality,governance and other factors.Secondly,this paper analyzes the audit of the going-concern ability of company Q,and finds the problems existing in H's assessment of the going-concern ability of company Q.Then it uses the optimization model proposed in this paper to analyze and obtain the assessment results and proposes the improvement.The study found that H's audit opinion on company Q has not played a role in timely warning.H CPA should use the emphasized paragraph in the 2016 audit report to remind the report users to pay attention to the risk of the uncertainty of going-concern ability of the company and cannot disclose after the relevant matter has occurred and has serious consequences.This paper argues that there are three reasons for H's problem in the assessment of company Q's going-concern ability: First,the understanding of auditing standards is not thorough;second,the auditor's analysis is not deep;third,the auditor's professional ethics is not enough.In response to the above reasons,this paper puts forward four suggestions: the first is to strengthen the understanding of auditing standards;the second is to clarify the assessment index of going-concern ability;the third is to clarify the assessment criteria;the fourth is that the auditor should improve the professional quality.The contribution of this paper is to integrate the research of previous scholars,to add industry status factors in the assessment of going-concern ability,and to analyze the combination of qualitative and quantitative methods,to construct an assessment framework of going-concern ability,and selects a case company for analysis,pointing out the problems that auditors have in assessing their going-concern abilityand suggesting improvements.