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Major Customer Reliance and Big 4 Auditor Going Concern Decisions Dan Dhaliwal Eller College of Management University of Arizona Paul N. Michas Eller College of Management University of Arizona Vic.

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This guide provides a clear and supportive approach to completing the Major Customer Reliance and Big 4 Auditor Going Concern Decisions form online. It is designed to help users, regardless of their legal experience, navigate the process effectively.

Follow the steps to fill out your form accurately and efficiently:

  1. Click ‘Get Form’ button to obtain the form and open it in the editor.
  2. Begin by entering the first section of the form, which typically includes general information about the company, such as its name, address, and identification number.
  3. In the next section, provide details regarding major customer reliance. Specify the percentage of sales generated from each major customer, ensuring that you only include those contributing more than 10% of total sales.
  4. Continuing, focus on the Big 4 Auditor section. You will need to identify the auditing firm and provide necessary details about their qualifications and experience with your specific industry.
  5. Complete any required fields regarding financial distress indicators and compliance with relevant financial accounting standards. This is to assess the risks linked to your customer reliance and how they may impact your ongoing operations.
  6. Review all entered information for accuracy and completeness. Ensure all necessary documents are attached, if required.
  7. Once satisfied with the accuracy of the information, save your changes. You may also download, print, or share the form as needed.

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In exercising judgement as to which risks are significant risks, the auditor is required to consider the following: Whether the risk is a risk of fraud. Whether the risk is related to recent significant economic, accounting or other developments, and therefore requires specific attention. The complexity of transactions.

The auditor's responsibility is to obtain sufficient appropriate audit evidence about the appropriateness of management's use of the going concern assumption in the preparation of the financial statements and to conclude whether there is a material uncertainty about the entity's ability to continue as a going concern.

Conditions that lead to substantial doubt about a going concern include negative trends in operating results, continuous losses from one period to the next, loan defaults, lawsuits against a company, and denial of credit by suppliers.

Possible mitigating factors to consider include, but are not limited to: Capital infusion from new and existing investors. Modification to debt obligations requirements. Rent abatements negotiated. Food cost saving strategies. Menu engineering. Negotiating better pricing with vendors. Menu price increases.

The auditor's responsibility is to obtain sufficient appropriate audit evidence about the appropriateness of management's use of the going concern assumption in the preparation of the financial statements and to conclude whether there is a material uncertainty about the entity's ability to continue as a going concern.

Audit conclusions and reporting On the basis of the evidence obtained, the auditor shall conclude whether a material uncertainty exists that may cast significant doubt about the ability of the entity to continue as a going concern.

Answer: If the auditor identifies risk factors that indicate that the going concern assumption is in doubt, they will undertake procedures to gather evidence regarding each risk factor.

The concept of going concern is an underlying assumption in the preparation of financial statements, hence it is assumed that the entity has neither the intention, nor the need, to liquidate or curtail materially the scale of its operations.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Privacy Notice
Legal Hub
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate WorkFlow
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232