Under the crisis, the continuous operation of enterprises faces unprecedented difficulties due to the reduction in product demand, the scarcity of raw material supply, and the increased difficulty in financing. This makes the evaluation of the going concern assumption particularly crucial.
Auditors need to pay attention to signs that may lead to issues with the audited entity's ability to continue as a going concern. These signs mainly include: debt restructuring, large-scale asset disposals, operating crises or even bankruptcies within companies of the same group, and delays in inventory shipments.
In essence, goodwill is an item that...