Acta Universitatis Danubius. Œconomica, Vol 12, No 1 (2016)

Understanding Going Concern in Auditing: Seker Poultry, Inc.

Ayca Zeynep Suer, Ahmet Turel


Under the going concern assumption, an entity is viewed as continuing in business for the foreseeable future. General purpose financial statements are prepared on a going concern basis, unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. In this case study, we examine the recent financial problems of Seker Poultry, Inc. – one of the listed companies in Borsa Istanbul –and their impacts on the financial statement audit process. This case provides an opportunity to examine the auditor’s judgment process and responsibilities regarding the going concern assumption. This case uses information in Seker’s recent publicly available financial statements and annual reports. The case can be used in undergraduate or graduate level audit courses.


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